Zimbabwe to sell gold coins as currency plunges
Zimbabwe’s central bank said it would start selling gold coins this month as a store of value to tame runaway inflation, which has significantly weakened the local currency.
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 price. international gold standard and the cost of production.
The “Mosi-oa-tunya” coin, named after Victoria Falls, can be converted into cash and exchanged locally and internationally, the central bank said. The gold coin will contain one troy ounce of gold and will be sold by Fidelity Gold Refinery, Aurex and local banks, he added.
Gold coins are used by international investors to protect against inflation and wars.
Zimbabwe last week more than doubled its benchmark rate from 80% to 200% and outlined plans to make the US dollar legal tender over the next five years to boost confidence.
Soaring inflation in the southern African country has put pressure on a population already struggling with shortages and moving memories of economic chaos years ago under veteran leader Robert Mugabes’ nearly four-decade rule .
Annual inflation, which hit nearly 192% in June, cast a shadow over President Emmerson Mnangagwas’ attempt to revitalize the economy.
Zimbabwe ditched its inflation-ridden dollar in 2009, opting instead to use foreign currencies, primarily the US dollar. The government reintroduced the local currency in 2019, but it quickly lost value again.