Zimbabwe to introduce gold coins as local currency tumbles

Reuters
Harare, Zimbabwe Updated: Jul 06, 2022, 01:19 PM(IST)

The gold coin will contain one troy ounce of gold and will be sold by Fidelity Gold Refinery, Aurex, and local banks, it added. (representative image) Photograph:( Others )

Story highlights

The "Mosi-oa-tunya" coin, named after Victoria falls, can be converted into cash and be traded locally and internationally, the central bank said

Zimbabwe’s central bank said it would start selling gold coins this month as a store of value to tame runaway inflation, which has considerably weakened the local currency.

The central bank governor John Mangudya said in a statement on Monday that the coins will be available for sale from July 25 in local currency, US dollars, and other foreign currencies at a price based on the prevailing international price of gold and the cost of production.

The "Mosi-oa-tunya" coin, named after Victoria falls, can be converted into cash and be traded locally and internationally, the central bank said.

Also read | Watch: Want to meet cute little gold smugglers? These ants will leave you in awe

The gold coin will contain one troy ounce of gold and will be sold by Fidelity Gold Refinery, Aurex, and local banks, it added.

Gold coins are used by investors internationally to hedge against inflation and wars.

Watch | WION Fineprint | Zimbabwe to introduce gold coins as local currency tumbles

Last week, Zimbabwe more than doubled its policy rate to 200 per cent from 80 per cent and outlined plans to make the US dollar legal tender for the next five years to boost confidence.

Soaring inflation in the southern African country has been piling pressure on a population already struggling with shortages and stirring memories of economic chaos years ago under veteran leader Robert Mugabe’s near four-decade rule.

Also read | At least 35 killed, 71 injured in Zimbabwe crash ahead of Easter gathering

Annual inflation, which hit almost 192 per cent in June, cast a shadow over President Emmerson Mnangagwa’s bid to revitalise the economy.

Zimbabwe abandoned its inflation-ravaged dollar in 2009, opting instead to use foreign currencies, mostly the US dollar. The government reintroduced the local currency in 2019, but it has rapidly lost value again.

WATCH WION LIVE HERE

You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Read in App