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Zimbabwe Struggling to Save Collapsing Currency Turns to Gold Coins 'With Store of Value’

Gold bars
Gold bars

Zimbabwe’s central bank says the country will start issuing gold coins which the Reserve Bank claims will be a store of value.

This comes at locals are abandoning the weakening local currency that has hit an all time low in both the interbank and black market rate.

In terms of the gold coins, RBZ governor John Mangudya said in a statement, “Upon purchase, the buyer shall take physical possession of the coin and be issued with a Bearer Ownership Certificate. The buyer or holder of the coin may opt to place it in the custody of bankers of own choice in which case a safe custody certificate/receipt will also be issued.”

Mangudya said the coin will have “liquid asset status, that is, it will be capable of being easily converted to cash, and will be tradable locally and internationally. The coin may also be used for transactional purposes.

“The coin will have prescribed asset status and institutional investors can use it to meet regulatory requirements for prescribed asset investments. The coin can be used as security for loans and credit facilities. At the instance of the holder, the bank will buy back the coin.”

He said the gold coins will be available for sale to the public from 25 July 2022 in both local currency and United States dollars and other foreign currencies at a price based on the prevailing international price of gold and the cost of production.

‘The coins will be sold through the bank (RBZ) and its subsidiaries, Fidelity Gold Refinery (Private) Limited and Aurex (Private) Limited, local banks and selected international banking partners. Entities selling the coins shall be required to apply Know Your Customer (KYC) principles.”

The gold coin shall be called the Mosi-Oa-Tunya Gold Coin weighing one troy ounce with 22 carats of gold and a serial number.