The Reserve Bank of Zimbabwe Introduces Gold Coins as Inflation Skyrockets

According to Bloomberg, the coins are a store of value to stabilize the nation’s tumbling exchange rate and offer an alternative to the US dollar, which is in high demand.

0
160
JOIN US ON TELEGRAM

In a press statement, the Reserve Bank of Zimbabwe (RBZ) announced the introduction of the Mosi-Oa-Tunya Gold coin.

The term means ‘Smoke that Thunders,’ a reference to Victoria Falls, the world’s greatest sheet of falling water, which traverses Zimbabwe and Zambia.

The gold coins are the government’s solution for people in the country to store value as inflation runs rampant in the economy.

______________________________________________________________________

SEE ALSO: Zimbabwe Inflation Rate Hits 191.6% in June 2022, Makes U.S. Dollar Legal Tender

______________________________________________________________________

According to Zimbabwe government statistics, annual inflation rose to 191.6% in June 2022.

“The Reserve Bank of Zimbabwe’s Monetary Policy Committee (MPC) resolved to introduce gold coins into the market as an instrument that will enable investors to store value.

The gold coins will be available for sale to the public in both local currency and US dollars and other foreign currencies at a price based on the prevailing international price of gold and the cost of production.”

– Governor, Reserve Bank of Zimbabwe

The Governor of the Reserve Bank of Zimbabwe, John Mangudya, announced the new gold coins would be minted by Fidelity Gold Refineries (Private) Limited and made available to the public through normal banking institutions.

RBZ owns Fidelity Gold Refineries (Private) Limited. The central bank operates as the only gold-buying and refining entity in Zimbabwe.

According to Bloomberg, the coins are a store of value to stabilize the nation’s tumbling exchange rate and offer an alternative to the US dollar, which is in high demand.

The 22-carat coin will be identified by a serial number and can be:

  • Easily converted to cash
  • Tradeable locally and internationally
  • Used to transact, and
  • Used as security for loans and credit facilities

The Zimbabwe dollar has lost two-thirds of its value against the dollar in 2022 alone and the gold coins are expected to boost investor confidence in the Zimbabwean dollar while lso enabling the central bank to mop up considerable amounts of excess Zimbabwean dollar liquidity out of th emarket through the sale of the coins.

______________________________________________________________________

RECOMMENDED READING: Zimbabwe Orders Banks to Stop Lending in Bid to Arrest Currency Decline

______________________________________________________________________

Thank you for your support by helping us create content:

BTC address: 3CW75kjLYu7WpELdaqTv722vbobUswVtxT

ERC20 Address: 0x03139524428e40E31f13909f8D994C915FB91277

SOL address: 9cC65AWFHj848kntcoyiT8av3jiRQEqyTTmBR1GvVUb

____________________________________________________________________

Follow us on Twitter for the latest posts and updates

Join and interact with our Telegram community

_____________________

Subscribe to our YouTube channel below for more updates:

____________________________________________________________________

LEAVE A REPLY

Please enter your comment!
Please enter your name here