Latest NewsZimbabwe start selling gold coins as local currency tumbles

Zimbabwe start selling gold coins as local currency tumbles

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

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

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

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

Gold coins used by investors internationally to hedge in contradiction of inflation and wars.

Last week, Zimbabwe more than doubled its policy rate to 200% from 80% 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.

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

Zimbabwe abandoned its inflation-ravaged dollar in 2009, electing instead to use foreign currencies, typically the U.S. dollar. The government reintroduced the local currency in 2019, but it has quickly lost value again.

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