Zimbabwean Central Bank to introduce gold coins to citizens as local currency tumbles

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Zimbabwean Central Bank to introduce gold coins to citizens as local currency tumbles

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

The country’s 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, U.S. 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.

Zimbabwean Central Bank to introduce gold coins to citizens as local currency tumbles

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

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

Annual inflation, which hit almost 192% 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 U.S. dollar. The government reintroduced the local currency in 2019 to aid the economy, but it has rapidly lost value again.

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