RBZ tells dealers to sell fuel in ZiG currency
RESERVE Bank of Zimbabwe (RBZ) governor John Mushayavanhu has urged fuel dealers to index fuel prices in the local currency citing the introduction of new ZiG denominations.
Mushayavanhu warned that operators trading exclusively in United States dollars (USD) risk incurring exchange rate losses when it comes to sourcing local currency to meet tax obligations.
Speaking during the Bulawayo provincial monetary policy statement presentation on Tuesday, Mushayavanhu alleged that fuel dealers who convert US dollars at banks to obtain ZiG are being disadvantaged by the prevailing buying rate.
“When the day comes for you to purchase fuel or pay tax, you have to find ZiG. Some dealers say, ‘No problem, I will go to my bank, sell US dollars and get ZiG,” Mushayavanhu said.
“Yes, you can do that. But when you sell foreign currency, the bank buys it from you at the buying rate.”
He said the current buying rate was around 25% and dealers could suffer losses when converting USD to ZiG.
“So you are actually losing out. You would be better off selling some of your fuel in ZiG at an exchange rate of 30,” he said.
The central bank boss said the repeal of Statutory Instrument 81A allowed traders to determine their own exchange rates.
He said dealers could price fuel at their preferred exchange rate, enabling them to generate sufficient local currency to meet tax obligations without suffering conversion losses.
“We have seen certain fuel dealers selling fuel in bulk in ZiG. They may not be doing it at the pump station, but they will say, ‘If you want 60 000 litres, I want payment in ZiG.’ It is happening.
“As we entrench the use of ZiG in the market, you are going to see more of that happening. You may even see some forecourts selling fuel in ZiG. It is coming.”
His remarks came as the central bank unveiled redesigned ZiG banknotes, which are scheduled to come into circulation next month.
Mushayavanhu said reliance on foreign currencies made the economy vulnerable to external shocks.
“There are geopolitical issues that may interfere with our ability to achieve stability,” he said.
“We are aware of potential increases in fuel prices arising from tensions in the Middle East, but authorities are determined to ensure inflation remains under control in 2026.”
The ZiG was first introduced in April 2024 to replace the Zimdollar that had been battered and rendered worthless by inflation.
The ZiG has, however, failed to attract widespread acceptance from retailers and some service providers, including those in government who still bear the brunt of past hyper-inflationary shocks.
