The Reserve Bank of Zimbabwe (RBZ) has thrown its full weight behind Government’s decision to pay all public sector suppliers and contractors exclusively in local currency, the Zimbabwe Gold (ZiG), describing the move as a strategic step towards strengthening the domestic economy.
In a press statement released on March 16, 2026, RBZ Governor John Mushayavanhu welcomed the policy direction announced by Finance Minister Mthuli Ncube, particularly the rollout of the National Standard Price List (NSPL), which is set to guide public sector procurement.
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The central bank said the immediate implementation of the NSPL will significantly boost demand and usage of ZiG across the economy, laying a critical foundation for Zimbabwe’s long-term goal of transitioning to a fully domestic currency system. Framing the policy as a key condition precedent for eventual de-dollarisation, RBZ said:
“The move will go a long way in promoting the demand and increased use of ZiG in the economy.”
To address concerns from businesses, the RBZ moved to reassure suppliers and contractors that receiving payments in ZiG will not compromise their operations. The bank confirmed that all public sector service providers will retain access to foreign currency through the Willing-Buyer Willing-Seller (WBWS) interbank market for bona fide import needs.
In a significant signal to the market, the RBZ said Zimbabwe currently holds sufficient foreign currency to meet legitimate demand. The central bank revealed that foreign currency inflows reached US$16 billion in 2025, enabling the build-up of strategic reserves and ensuring consistent coverage of market demand.
From a macroeconomic perspective, the RBZ pointed to declining inflation as evidence of growing stability. Inflation stood at 4.1% in January and further eased to 3.85% in February 2026, indicating that both price and exchange rate expectations are becoming more predictable.
This stability, authorities argue, should give confidence to businesses transacting in ZiG, particularly those engaged in government contracts.
Importantly, the RBZ clarified that the policy does not signal an immediate end to Zimbabwe’s multicurrency system. Instead, the country will only transition to exclusive use of the local currency once key economic conditions, including sustained demand and broader acceptance of ZiG, are fully met.
Analysts say the coordinated stance between fiscal and monetary authorities reflects a deliberate push to restore confidence in the local currency, while carefully managing risks associated with abrupt policy shifts.
As Zimbabwe navigates a delicate path between stability and reform, the RBZ’s assurances on foreign currency availability and price stability will be critical in determining whether businesses fully embrace the ZiG in public sector transactions.
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