In a bid to curb an inflation rise that has hurt the country’s unstable currency, Zimbabwe has launched gold coins to be sold to the public.
The country’s central bank – Reserve Bank of Zimbabwe, which disbursed 2,000 coins to commercial banks, announced the move on Monday.
Called Mosi-oa-Tunya, which in the local Tonga language refers to Victoria Falls, the coins “will have liquid asset status”, meaning they “will be capable of being easily converted to cash and will be tradable locally and internationally”, the central bank said in its announcement, adding the coins “may also be used for transactional purposes”.
The coins will only be able to be traded for cash 180 days after purchase. Individuals or companies will be able to buy them from authorised outlets such as banks and keep them at a bank or take them home, according to the announcement. Foreigners will only be able buy the coins in foreign currency.
The first batch was minted outside the country but eventually they will be produced locally, said John Mangudya, the governor of the Reserve Bank of Zimbabwe.
He added the 22-carat coins can be used for purchases in shops, depending on whether the shop has enough change, as well as security for loans and credit facilities.
Their price will be determined by the international market rate for an ounce of gold, plus five percent for the cost of producing the coin. At the time of the launch on Monday, the cost of one Mosi oa Tunya was $1,824, according to media outlet Al Jazeera.
