Suppliers Warn Chaos As Government Enforces ZiG

Zimbabwe's plan to pay local suppliers exclusively in the local currency, ZiG, has sparked alarm among businesses. The Reserve Bank of Zimbabwe (RBZ) assures the public that this move does not signal the end of the multi-currency system. However, suppliers warn of potential chaos as they are compelled to accept ZiG for government contracts. The RBZ guarantees sufficient foreign currency reserves to meet US dollar demands, aiming to prevent exchange rate instability. Despite these assurances, fears of disruption persist, highlighting a significant challenge in transitioning to exclusive local currency transactions for public sector payments.