Reserve Bank of Zimbabwe (RBZ) Governor John Mushayavanhu has announced that businesses can set their prices based on market exchange rates rather than adhering strictly to the official central bank rate. He made the statement during a meeting with the Tourism Business Council of Zimbabwe last week.
“Companies are allowed to adopt any USD-to-Zimbabwean Dollar exchange rate they deem appropriate,” Mushayavanhu explained, defending the bank’s recent monetary policy measures.
The policy aims to liberalize Zimbabwe’s pricing system, allowing businesses to respond more flexibly to current market conditions. Mushayavanhu assured business owners that the Financial Intelligence Unit would not penalize them for using alternative exchange rates as long as pricing remains within reasonable margins.
He warned, however, that businesses implementing inflated exchange rates could struggle to remain competitive in the market.
The announcement comes amid ongoing efforts to stabilize the Zimbabwe Gold (ZiG) currency, which was introduced in April 2024 following prolonged struggles with exchange rate instability and high inflation.
RBZ has implemented tight monetary policies and high interest rates to discourage speculative borrowing, measures the central bank claims will support ZiG’s long-term stability.
RBZ Deputy Governor Innocent Matshe predicted the market would eventually settle at a more realistic exchange rate of US$1 to ZiG22. He suggested fuel dealers would voluntarily transition to selling fuel in local currency over time.
