Mthuli Ncube defends ZiG-only supplier payments

ZiG-only supplier payments just forced the currency fight into daily business, and every company dealing with the government is stuck playing by that rule.

Why the policy landed

• Finance Minister Mthuli Ncube backed ZiG-only supplier payments.
• The government wants heavier ZiG demand from local deals.
• Harare hosted the post-Cabinet briefing.
• Backers think stronger demand could lift ZiG.

Why Ncube thinks it could work

• Ncube argued that depreciation panic is not automatic.
• Tighter ZiG supply could firm its rate.
• Stakeholders feared quick forex switching would hit prices.
• Economics, in his view, can cut either way.

How officials are squeezing liquidity

• Authorities are actively choking off excess ZiG.
• Negotiable Certificates of Deposits are part of it.
• Interest-rate tweaks are also in the toolkit.
• Those moves aim to steady circulation.

Why suppliers are getting boxed in

• The government tied this shift to overpricing worries.
• Officials checked common goods and service costs.
• A pricing framework sets acceptable quote bands.
• Higher bids get bounced from procurement systems.

Where forex still stays available

• Foreign currency still covers imports when needed.
• Businesses can tap banks for forex access.
• Reserves, Ncube said, can handle import demand.
• Gold and hard currency were both cited.