THE Reserve Bank of Zimbabwe (RBZ) has moved to alleviate concerns about the government’s plan to pay public-sector suppliers and contractors exclusively in local currency, ZiG. The central bank reassures that businesses receiving ZiG payments can still access foreign currency through the official market for genuine import needs.
RBZ Governor Dr John Mushayavahu emphasized that the move doesn’t signal the end of the country’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,” he said. The RBZ statement followed the government’s announcement that suppliers will be paid only in ZiG, aiming to strengthen the local currency’s use.
The central bank says businesses paid in ZiG can buy foreign currency on the official Willing-Buyer Willing-Seller (WBWS) Interbank Foreign Exchange Market. “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 Interbank Foreign Exchange Market for their bona fide import requirements,” Dr Mushayavahu said.
Authorities say the arrangement is meant to prevent pressure on the parallel market exchange rate.
The Reserve Bank also sought to reassure businesses and the public that Zimbabwe has enough foreign currency inflows to meet demand.
According to the central bank, foreign currency receipts reached about US$16 billion (about R299 billion) in 2025.
“The country has enough foreign currency to cover all bona fide foreign currency demand for settling foreign payment transactions,” the Reserve Bank said.
The central bank added that increased forex inflows have helped build strategic reserves.
“Increased foreign currency receipts, up to US$16 billion in 2025, have supported the Reserve Bank’s build-up of strategic foreign currency reserves.”
Authorities also pointed to low inflation figures as evidence that economic stability is improving.
“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.”
The Reserve Bank also clarified that paying suppliers in ZiG does not mean the multicurrency system has been scrapped.
Officials said Zimbabwe will only move fully to the local currency when certain economic conditions are met.
“The stance taken by Government to pay its local suppliers and contractors exclusively in ZiG does not signal the end of the multicurrency system.”
The central bank added that the shift to a single currency will only happen after several economic benchmarks are achieved.
“The country will only transition to the exclusive use of local currency when all the necessary conditions precedent have been successfully met.”
Authorities say these conditions include stronger demand for ZiG and broader use of the currency across the economy.
The RBZ also pledged to maintain stability in both prices and the exchange rate going forward.
“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.”
