Suppliers Alarm Over ZiG Enforcement

The Reserve Bank of Zimbabwe (RBZ) announced the government will pay its contractors exclusively in ZiG. This policy aims to strengthen the domestic currency and improve fiscal discipline. RBZ Governor John Mushayavanhu welcomed the initiative, stating it promotes ZiG usage. Suppliers and businesses voiced alarm, warning of potential chaos from the ZiG-only transaction enforcement. They fear the policy threatens recent exchange rate stability and creates operational challenges. The RBZ assured state contractors of sufficient foreign currency reserves to meet US dollar demands. Zimbabwe’s plan to pay local suppliers exclusively in ZiG sparked alarm among businesses. The policy stems from objectives including strengthening domestic currency demand and improving public procurement systems. The RBZ guarantees forex for ZiG-paid contractors to mitigate concerns.