RBZ Backs ZiG-Only Payments for Suppliers

By Kudzaishe Chimonera

The Reserve Bank of Zimbabwe (RBZ) has endorsed a government directive requiring public sector suppliers and contractors to be paid exclusively in the local currency, ZiG describing the move as a key step towards strengthening its use in the economy.

In a statement, John Mushayavanhu said the policy recently announced by Finance Minister Mthuli Ncube would help boost demand for the domestic currency and support long-term monetary stability.

“The Reserve Bank welcomes the pronouncement by the Minister of Finance… on implementation of the National Standard Price List (NSPL) to guide Public Sector procurement,” he said.

The policy requires that all government payments to suppliers and contractors be made in ZiG, as part of broader efforts to promote its circulation within the economy.

Mushayavanhu said the measure would play a crucial role in reinforcing the use of the currency.

“The immediate implementation of the NSPL will go a long way in promoting the demand and increased use of ZiG in the economy,” he said.

He added that the move aligns with Zimbabwe’s longer-term objective of transitioning towards a single currency system, although authorities have stressed that the multicurrency framework remains in place for now.

“The stance taken by Government… does not signal the end of the multicurrency system,” he said, noting that a full transition would only occur once the necessary economic conditions are met.

To reassure businesses, the central bank said suppliers would still be able to access foreign currency through formal channels for legitimate import requirements.

“Providers of goods and services to the Public Sector… will have access to foreign currency on the Willing-Buyer Willing-Seller Interbank Foreign Exchange Market for their bona fide import requirements,” Mushayavanhu said.

The Reserve Bank of Zimbabwe also maintained that the country has adequate foreign currency reserves to meet demand for international payments.

“The Reserve Bank reiterates that the country has enough foreign currency to cover all bona fide foreign currency demand for settling foreign payment transactions,” he said.

Authorities say the policy is being introduced at a time when economic conditions are showing signs of stability, with inflation remaining relatively low in recent months.

Mushayavanhu pointed to single-digit inflation figures as evidence of improved confidence in the market.

“Single digit inflation levels achieved in January (4.1%) and in February 2026 (3.05%), show that inflation and exchange rate expectations have been anchored,” he said.

The move is part of broader efforts by the government to stabilise the economy, strengthen the local currency and improve fiscal discipline, while maintaining access to foreign exchange for critical imports.

Economists say the success of the policy will depend on sustained confidence in the ZiG and the availability of foreign currency to support business operations.