Online Reporter
Oliver Kazunga
Senior Reporter
The Reserve Bank of Zimbabwe is set to introduce a digital foreign exchange trading platform as part of reforms to modernise the currency market, strengthen transparency, and improve price discovery, with support from US$1,4 billion in forex reserves.
This comes as Zimbabwe continues to consolidate gains under a market-driven exchange rate system, supported by rising foreign currency reserves, which now form a key buffer for import cover and broader macroeconomic stability under the Willing-Buyer Willing-Seller (WBWS) framework.
The digital platform is expected to transform the functioning of the interbank foreign exchange market by improving execution speed, reducing inefficiencies and enhancing confidence in price formation across the economy.
In an interview, RBZ Governor Dr John Mushayavanhu said the initiative is central to ongoing reforms aimed at strengthening market efficiency and macroeconomic predictability.
“Going forward, the Reserve Bank of Zimbabwe will be introducing a digital foreign exchange trading platform.
“This system is intended to enhance market efficiency further, improve transparency, and strengthen price discovery, thereby ensuring a more predictable and credible foreign exchange market that supports broader macroeconomic stability,” he said.
The introduction of the system is part of a broader policy thrust to entrench a fully market-driven foreign exchange regime in which prices are determined by willing buyers and willing sellers, with the RBZ playing a strategic intervention role rather than an administrative allocator of foreign currency.
Dr Mushayavanhu said the foreign exchange market continues to operate without administrative allocation mechanisms, with access to foreign currency strictly determined by market participation and liquidity conditions.
He said the effectiveness of the system is being reinforced by rising foreign currency reserves, which provide a critical safeguard against external sector pressures.
“The primary safeguard against unmet demand on the foreign exchange market is the accumulation of foreign currency reserves to levels aligned to regional and international benchmarks of between 3-6 months of import cover.
“In its normal operations, the WBWS foreign exchange market would not develop any backlogs as the Reserve Bank will intervene to smooth any supply and demand mismatches to allow the market to clear daily,” sad the RBZ Governor.
He added that the RBZ’s capacity to intervene in the market is backed by a strengthened reserve position.
“The Reserve Bank’s intervention in the foreign exchange market is enabled by its accumulation of foreign currency reserves amounting to US$1,4 billion as at March 2026 and targeted to reach 6 months of import cover over the next four years,” said Dr Mushayavanhu.
The monetary authority has maintained that its interventions are aimed at smoothing volatility and ensuring orderly market functioning, rather than direct allocation of foreign currency to economic agents.
“The Reserve Bank’s role in the foreign exchange market is strategic intervention.
“In this regard, the Reserve Bank has made interventions amounting to US$1,6 billion since April 2024,” he said, adding that data on sector-specific disbursements is not available, as foreign currency is not centrally allocated, but accessed through market mechanisms.
In a notable development in the real economy, selected fuel service stations in Bulawayo have begun accepting ZiG, although operators continue to rely on foreign currency for fuel imports.
Dr Mushayavanhu clarified the operating framework for fuel retailers:
“At the moment, fuel service providers have a dispensation to sell fuel exclusively in the currency of choice, mainly foreign currency, to enable them to restock and ensure seamless availability of the product.
“The fuel service providers have, however, ZiG obligations, mainly the requirement to meet 50 percent of their tax obligations in ZiG at the Quarterly Payment Dates (QPDs).”
He said pricing models should be calibrated to ensure sustainability under the dual currency structure.
“In this context, fuel stations that have started accepting ZiG in their sales are expected to calibrate their pricing models to ensure that the forex takings continue to support their fuel import requirements, with the ZiG takings enabling them to meet their ZiG obligations, consistent with the multicurrency system in place.”
As reserves continue to build, he said the use of ZiG in fuel transactions is expected to expand gradually, supported by access to foreign currency through the interbank market.
“As the economy continues to build enough foreign currency reserves as part of the transition to the exclusive use of the local currency, the proportion of fuel sold in ZiG will gradually increase.
“Thus, the fuel import requirements will naturally be met through the interbank foreign exchange market, consistent with the envisaged monetary regime,” said Dr Mushayavanhu.
