Zimbabwe: ZiG Payment Policy Not the End of Multicurrency System - RBZ

The Reserve Bank of Zimbabwe (RBZ) has assured the public that the recent move by government compelling its contractors to accept exclusive ZiG payment does not signal the end of the multi-currency system.

Last week, the Finance Minister, Mthuli Ncube directed all government contractors to be paid exclusively in Zimbabwe Gold (ZiG) in line with the new National Standard Price List (NSPL) system aimed at spurring the local currency demand.

Responding to the initiative, RBZ governor Dr John Mushayavanhu said that the measures are not a signal for the end of the multi-currency system.

"Single digit inflation levels achieved in January at 4,1% and 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 RBZ therefore, advises the public that the stance taken by the government to pay its local contractors does not signal the end of the multi-currency system," he said in a statement.

The RBZ exchequer reaffirmed the commitment to pursue a market led monocurrency approach which remains properly guided by the Conditions Precedent launched by the RBZ in the 2026 Monetary Policy Statement.

Mushayavanhu added that the latest measures are a step in the right direction which will go a long way to bolster demand for the ZWG currency.

In a gesture aimed at keeping the exchange rate market well above the waters without any volatility threats, the RBZ governor assured contractors that their foreign currency needs will be adequately addressed on the Willing Buyer Willing Seller market.

"Further, 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 bonafide import requirements. The RBZ reiterates that the country has enough foreign currency to cover all bonafide foreign currency demand for selling foreign payment transactions," added Mushayavanhu.

Read the original article on New Zimbabwe.