The Reserve Bank of Zimbabwe (RBZ) announced its decision to pay all public sector suppliers and contractors exclusively in local currency, ZiG, in a move aimed at strengthening the domestic currency.
In a statement, yesterday, RBZ Governor, Dr John Mushayavanhu, said the Central Bank supports the position announced by the Ministry of Finance, Economic Development and Investment Promotion that all local contractors supplying goods and services to Government will be paid in ZiG under the newly introduced National Standard Price List (NSPL).
“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 Reserve Bank welcomes the pronouncement by the Minister of Finance on the implementation of the National Standard Price List to guide Public Sector procurement,” Dr Mushayavanhu added.
He said the measure will help increase the use of the domestic currency in the economy, which is one of the key requirements before Zimbabwe can move towards the exclusive use of 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 for the envisaged transitioning to the exclusive use of the domestic currency,” he added.
Dr Mushayavanhu assured contractors and suppliers that those paid in ZiG will still be able to access foreign currency for legitimate imports through the interbank 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.
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 added.
He said strong foreign currency inflows had enabled the central bank to build reserves, guaranteeing availability of foreign exchange.
“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 of uncovered demand in the market,” said Dr Mushayavanhu.
The RBZ Governor added that inflation remained under control, making it safe for contractors to be paid in ZiG.
“Single digit inflation levels achieved in January (4.1 percent) and February 2026 (3.85 percent) show that inflation and exchange rate expectations have been anchored.
Public Sector suppliers and contractors can be assured that payment in ZiG will not negatively impact their business operations,” he noted.
He stressed that paying contractors in local currency does not mean the end of the multicurrency system.
“The stance taken by Government to pay its local suppliers exclusively in ZiG does not signal the end of the multicurrency system.
The country will only transition to the exclusive use of local currency when all the necessary Conditions Precedent have been successfully met,” said Dr Mushayavanhu.
Government recently introduced the National Standard Price List to guide procurement by Ministries, Departments, State enterprises and local authorities as part of measures to stabilise prices, increase the use of ZiG and create conditions for the eventual transition to a fully local currency-based economy.
