RBZ Reassures Market as Government Moves to Pay Suppliers in ZiG

Reserve Bank of Zimbabwe headquarters in Harare

The Reserve Bank of Zimbabwe (RBZ) has moved to calm market concerns following the government’s decision to pay local suppliers exclusively in the Zimbabwe Gold (ZiG) currency.

On March 13, Finance Minister Mthuli Ncube announced that all payments to local contractors and suppliers would now be made in ZiG, a policy shift aimed at strengthening demand for the domestic currency.

The move triggered anxiety among businesses and analysts, who warned it could force suppliers to source US dollars on the parallel market, potentially fuelling exchange rate volatility and inflationary pressures. However, in a statement issued on March 17, RBZ Governor John Mushayavanhu said the policy does not signal the end of Zimbabwe’s multicurrency system.

“The stance taken by Government to pay its local suppliers and contractors exclusively in ZiG does not signal the end of the multicurrency system,” Mushayavanhu said.

He added that suppliers would continue to access foreign currency through the Willing-Buyer Willing-Seller (WBWS) interbank foreign exchange market to meet legitimate import requirements.

“The Reserve Bank guarantees the consistent supply of foreign currency to the WBWS foreign exchange market,” he said, noting that the country has sufficient reserves to meet bona fide demand.

According to the central bank, Zimbabwe recorded foreign currency receipts of up to US$16 billion in 2025, which has supported the build-up of strategic reserves and improved liquidity in the formal market. The RBZ also pointed to recent inflation data as evidence of growing stability. Official figures show inflation stood at 4.1% in January and eased to 3.85% in February 2026, suggesting that price and exchange rate expectations are stabilising.

Mushayavanhu said the introduction of the National Standard Price List (NSPL) for public procurement would help anchor pricing in ZiG and drive wider adoption of the currency across the economy.

“The implementation of the NSPL will go a long way in promoting demand and increased use of ZiG,” he said, describing it as a key step toward eventual de-dollarisation.

Authorities insist that any transition to a fully local currency regime will only occur once specific economic conditions, including sustained stability and broad market confidence, have been met.

For now, the RBZ maintains that businesses receiving ZiG payments will not be disadvantaged, as long as they can reliably access foreign exchange through formal channels.

The policy forms part of broader efforts by the government to re-establish the dominance of the local currency while maintaining macroeconomic stability in a historically volatile monetary environment.

ZiG currency Zimbabwe