THE Reserve Bank of Zimbabwe (RBZ) has assured companies that foreign currency will remain accessible even after the government announced it will pay contractors and suppliers exclusively in the Zimbabwe Gold (ZiG) currency.
The move follows Treasury’s introduction of a National Standard Pricing List for goods and services procured by ministries, departments and agencies, which also mandated local currency payments amid fears of fuelling the parallel market.
Treasury last week introduced benchmarked pricing for goods and services procured by ministries, departments and agencies, adding that it would solely pay in the Zimbabwe Gold (ZiG) currency amid fears this will fuel the parallel market if companies do not access the foreign currency using formal channels.
RBZ governor John Mushayavanhu welcomed the initiative, saying it promotes the use of ZiG and sets the stage for a transition to exclusive domestic currency usage.
“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,” he said.
Mushayavanhu highlighted the country’s strong foreign currency position, supported by US$16 billion in external receipts in 2025, which allows the Reserve Bank to meet legitimate foreign payment demands.
He said the strong performance guaranteed forex availability, citing the central bank's consistent clearance of unmet demand in the market.
Mushayavanhu emphasised that the policy does not signal the end of Zimbabwe’s multi-currency system.
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However, some economists have raised concern about unintended consequences.
“The payment in ZiG presents a huge problem if you need to import materials to supply the government. The parallel market is back as suppliers will look for USD elsewhere,” economist Vince Musewe told NewsDay.
He said while the introduction of a standard pricing framework could help to curb overpricing, its effectiveness would depend on how accurately it reflects market conditions.
“National Standard Pricing List is not a bad idea, given the tendency to overprice. However, I wonder if the prices are accurate. Suppliers will simply begin to reject government business and that's another problem,” Musewe said.
“This policy will create another self-manufactured currency crisis because its effects have not been thought through once more.”
Economist Chenayimoyo Mutambasere noted significant risks.
“Suppliers, who rely on imported inputs, may struggle if they are paid in ZiG without reliable access to foreign currency, leading to inflated prices, reduced participation or low quality goods and services,” she said.
“Increased ZiG liquidity could also heighten volatility if recipients quickly convert to USD, putting pressure on the exchange rate.
“Ultimately, without strong policy credibility and consistent macroeconomic management, this measure may boost liquidity, but fail to deliver stability.”
