Zimbabwe has launched gold coins to be sold to the public, in a bid to curb an inflation spike that has eroded the country’s unstable currency. The gold coins will be called Mosi-oa-Tunya which in the local Tonga language refers to Victoria Falls.
Key features
- The move was announced on July 25, 2022 by the country’s central bank, the Reserve Bank of Zimbabwe, which disbursed 2,000 coins to commercial banks.
- The gold coins — will have “liquid asset status”, meaning they can be converted to cash, traded locally and internationally, and used for transactions.
- People can only trade the coins for cash after holding them for at least 180 days.
- Individuals or companies will be able to buy them from authorised outlets such as banks and keep them at a bank or take them home.
- Foreigners can only buy the coins in foreign currency.
- The first batch was minted outside the country but eventually they will be produced locally.
- The 22-carat coins can be used for purchases in shops, depending on whether the shop has enough change, as well as security for loans and credit facilities.
- Their price will be determined by the international market rate for an ounce of gold, plus five percent for the cost of producing the coin.
- According to the International Monetary Fund (IMF), inflation in Zimbabwe reached 837% (year on year) in July 2020 and, although tighter fiscal policy helped reduce it to 60.7% by the end of last year, it remains in the high double-digits.
