It’s Not The End Multicurrency System, RBZ Clarifies Govt’s ZiG-Only Payments Policy For Local Suppliers

The Reserve Bank of Zimbabwe has moved to calm nerves over the government’s plan to pay local suppliers only in the local currency, ZiG.

On 13 March 2026, Finance Minister Mthuli Ncube said all payments to local suppliers would be made exclusively in ZiG.

People worried this could force suppliers to buy US dollars on the black market, which might push up the exchange rate and spark more inflation.

But in a statement on Tuesday, 17 March, RBZ Governor John Mushayavanhu reassured the public that paying suppliers in ZiG doesn’t mean the end of the multicurrency system.

He added that suppliers can still get foreign currency on the official interbank market for genuine import needs. Reads the statement:

“The Reserve Bank welcomes the pronouncement by the Minister of Finance, Economic Development and Investment Promotion, Hon. Prof. 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.

“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 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 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.

“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.

“Single-digit inflation levels achieved in January (4.1%) and in February 2026 (3.85%) 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.

“The Reserve Bank further advises the public that the stance taken by 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.”

Related:

“Economy starved of local currency,” Economist accuses RBZ of withdrawing ZiG from circulation ZiG Getting Positive Reception, Says RBZ Governor Mushayavanhu