Source: ZiG only payments won’t hurt suppliers, not the end of multicurrency regime-RBZ – herald
Nqobile Bhebhe
Zimpapers Business Hub
THE Reserve Bank of Zimbabwe (RBZ) has assured public suppliers and contractors that Treasury’s decision to pay them exclusively in ZiG will not negatively affect their operations.
In its assurance, the central bank stressed its commitment to maintaining durable domestic currency stability.
This also follows the Government’s introduction of the National Standard Price List (NSPL) to guide public procurement, which RBZ Governor Dr John Mushayavanhu described as a bold and strategic intervention to enhance the use of the domestic currency in the economy.
The central bank said payments exclusively in the domestic currency, while crucial to grow demand for ZiG and the planned eventual transition to a domestic mono-currency, did not signal the end of the multicurrency system.
According to the apex bank, the country will switch to a domestic monocurrency regime only when all Conditions Precedent have been met, including the wider use of the domestic currency introduced in April 2024.
The central bank also assured public suppliers and contractors that, under exclusive ZiG payments, it will guarantee a consistent supply of foreign currency on the Willing-Buyer Willing-Seller (WBWS) interbank foreign exchange market to meet bona fide import requirements.
The Treasury’s decision to pay suppliers and contractors exclusively in the domestic currency comes amid growing macroeconomic stability, with inflation plunging from a high of 95.8 percent in July 2024 to a three-decade low of 3,8 percent.
Similarly, the exchange rate has hovered around ZiG27/US$1.
The stability of ZiG and low domestic currency inflation in Zimbabwe through late 2024 and 2025 has been driven by a combination of the forex and gold-backed currency framework, strict monetary and fiscal discipline and enhanced foreign currency inflows.
Earlier, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube had pledged the Treasury’s commitment to lead in using the domestic currency.
Against this background, Minister Ncube said the Treasury would, similarly, also pay its suppliers and contractors in ZiG.
The central bank said the immediate implementation of the NSPL will play a critical role in strengthening demand for ZiG, which is a key condition for the eventual transition to a fully-fledged domestic currency system.
“The Reserve Bank welcomes the pronouncement by the Minister of Finance, Economic Development and Investment Promotion, Honourable Professor Mthuli Ncube, on the implementation of the National Standard Price List (NSPL) to guide Public Sector procurement.
“Government is, therefore, commended for taking a lead and a bold step in settling all its local suppliers and contractors exclusively in local currency, ZiG,” Dr Mushayavanhu said.
“The immediate implementation of the NSPL will go a long way in promoting the demand and increased use of ZiG in the economy, a critical Condition Precedent (CP) for the envisaged transitioning to the exclusive use of the domestic currency.
“Against this background, the Reserve Bank wishes to complement the Honourable Minister’s strategic intent by assuring all public sector suppliers, contractors and the general public of its commitment to the continued stability of the ZiG.
“Furthermore, providers of goods and services to the public sector that will receive payment in ZiG will have access to foreign currency on the Willing-Buyer Willing-Seller (WBWS) Interbank Foreign Exchange Market for their bona fide import requirements,” he said.
The RBZ underscored that the country’s foreign currency position remains strong, with sufficient reserves to meet all legitimate external payment obligations.
“The Reserve Bank reiterates that the country has enough foreign currency to cover all bona fide foreign currency demand for settling foreign payment transactions.
“Commendably, increased foreign currency receipts, up to US$16 billion in 2025, have supported the Reserve Bank’s build-up of strategic foreign currency reserves. This strong performance in the external sector guarantees foreign exchange availability as evidenced by the consistent clearance by the Reserve Bank of the uncovered demand in the market,” said Dr Mushayavanhu.
He added that macroeconomic fundamentals continue to firm, with inflation and exchange rate expectations remaining stable.
“Single-digit inflation levels achieved in January (4,1 percent) and in February 2026 (3,85 percent) show that inflation and exchange rate expectations have been anchored.
“In this regard, public sector suppliers and contractors can be assured that payment in ZiG will not negatively impact their business operations. The Reserve Bank, therefore, guarantees the consistent supply of foreign currency to the WBWS foreign exchange market,” he said.
Dr Mushayavanhu clarified that the Government’s decision to pay local suppliers in ZiG does not mark the end of the multicurrency system, but rather forms part of a gradual and conditions-based transition.
“The Reserve Bank further advises the public that the stance taken by the Government to pay its local suppliers and contractors exclusively in ZiG does not signal the end of the multicurrency system.
“As repeatedly emphasised, the country will only transition to the exclusive use of local currency when all the necessary Conditions Precedent (CPs) have been successfully met. These CPs include improved demand and wider use of ZiG.
“As pronounced in the February 2026 Monetary Policy Statement, the Reserve Bank affirms its strong commitment to sustainably maintain the current price and exchange rate stability, which is critical to safeguarding the value of the ZiG,” he said.
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