Zimbabwe’s central bank stated that it will commence selling gold coins this month as a store of value to stop inflation, which has weakened the Zimbabwean currency against the US Dollar.
John Mangudya, Zimbabwe’s central bank governor, revealed this is a statement on Monday that the coins will be available for sale from July 25. These coins will be bought using US dollars, Zimbabwean dollars and other foreign currencies at a price based on the prevailing international price of gold and the cost of production.
The gold coins are named “Mosi-oa-tunya” named after Victoria falls. The gold coins can be converted into cash and be traded locally as well as internationally according to the the central bank statement.
The said gold coin will consist of one troy ounce of gold and will be traded by Aurex, Fidelity Gold Refinery as well as by the local banks.
A couple of days ago, Zimbabwe more than doubled its policy rate to 200% from 80% and indicated that they were planning to make the U.S. dollar legal tender for the next five years to boost confidence in the economy.
In June, annual inflation hit 192% in Zimbabwe. This is being problematic for the country’s president Emmerson Mnangagwa’s efforts to revive the economy.
In 2009, Zim abandon their local currency and instead used foreign currencies with the U.S. dollar being the most preferable. The local currency was reintroduced after 10 years in order to prop the economy. However, that currency has once again lost its value.
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