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HomeUncategorizedZimbabwe to issue gold coins amid depreciation of national currency

Zimbabwe to issue gold coins amid depreciation of national currency

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Inflation reached 191% last June in this African country.

Zimbabwe will issue from the end of this month gold coins as one reserve of value, reported the Central Bank of the South African country, which is striving to contain the high rates of inflation that have been eroding the currency national.

The coins of one troy ounce of precious metal are will develop as an alternative store of value to the US dollar, whose high demand is attributed to the depreciation of the local currency.

Inspired by the Victoria Falls, the coins will be sold by Fidelity Gold Refinery, Aurex Jewelry and local banks in local and foreign currency from July 25, and can be commercialize in international markets.

Its price will be based on the price of gold in the international market and the cost of production.

“The coin will have the status of liquid asset, that is, it can be easily converted into cash and will be traded locally and internationally. The currency may also be used for transactional purposes,” the statement states.

  • Inflation reached 191% last month, evoking memories of the hyperinflation of the 2000s that saw three redenominations, the printing of a 100 trillion Zimbabwean dollars and ended up leading to the rejection of the Zimbabwean dollar in 2009. The currency was reintroduced in 2019 but its value fell again rapidly.
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