Source: Zim has enough forex – herald
Debra Matabvu
Senior Reporter
ZIMBABWE has sufficient foreign currency to cover all bona fide imports of goods and services for public sector service providers following a steady increase in foreign currency receipts and reserves over the past few years, the Reserve Bank of Zimbabwe has said.
This follows a recent announcement by the Minister of Finance, Economic Development and Investment Promotion, Professor Mthuli Ncube, that, going forward, public sector suppliers of goods and services will be paid exclusively in Zimbabwe Gold (ZiG).
Amid concerns that this could lead to inflation as suppliers chase the United States dollar on the parallel market, RBZ Governor John Mushayavanhu, in a statement, said strong performance in the external sector has driven foreign currency receipts to approximately US$16 billion in 2025, guaranteeing the availability of foreign exchange.
He said suppliers will be able to access foreign currency through the Willing Buyer Willing Seller (WBWS) Interbank Foreign Exchange Market, adding that single-digit inflation rates recorded in January and February — 4.1 percent and 3.85 percent, respectively — will help anchor both inflation and expectations, cushioning businesses against the impact of ZiG payments.
Dr Mushayavanhu also said the implementation of the National Standard Price List (NPSL), introduced by the Ministry of Finance, Economic Development and Investment Promotion, will promote demand for and increased use of the local currency.
“The immediate implementation of the NSPL will go a long way in promoting 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,” he said. “Against this background, the Reserve Bank wishes to complement the Hon 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 who will receive payment in ZiG will have access to foreign currency on the Willing-Buyer Willing-Seller Interbank Foreign Exchange Market for their bona fide import requirements.
“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.”
Dr Mushayavanhu said the strong performance on foreign currency receipts is evidenced by consistent clearance by the central bank.
“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,” he said. “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.”
The Second Republic led by President Mnangagwa has crafted macroeconomic policies that have brought stability in the country.
Dr Mushayavanhu said the move by Government to pay its local suppliers and contractors exclusively in ZiG does not signal the end of the multicurrency system.
He said as pronounced in the February 2026 Monetary Policy Statement, the country will only transition to the exclusive use of local currency when all the necessary Conditions Precedent (CPs) have been successfully met.
Economics expert and Africa Economic Development executive director of strategies, Professor Gift Mugano, said the Government’s decision to pay service providers and contractors in local currency will boost the use of the domestic currency.
“There is no way we can increase the usage of ZiG in the market if Government does not take leadership,” he said.
“This is the thing which we have been raising as experts, to say if ZiG is going to be indeed successful, if indeed we are going to create demand for ZiG, Government must take a deliberate decision to use ZiG in its transactions.
“So it’s only fair and appropriate that we praise Government for heeding the call.”
Prof Mugano also said the move was unlikely to fuel inflation, as the amount of ZiG in circulation is fully backed by foreign currency.
“Inflation is only triggered by two points, two reasons,” he said.
“One, if there’s printing of money, or if there is no sufficient reserves. If there are no sufficient reserves, there is banking recurrence, and people go to the black market.”
Prof Mugano called for the enforcement of payment of ZiG taxes to increase demand and supply of ZiG.
“Government should expedite the implementation of payment of taxes in ZiG because they made that decision already, particularly on Quarterly Payment Dates (QPDs).
“They must enforce it so that at least the demand and supply of ZiG becomes a complete circle. If Government pays suppliers in ZiG without collecting payment of taxes in ZiG, the supply of ZiG to the Government might be limited.”
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