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Zimbabwe to release another batch of gold coins

by Staff reporter
02 Aug 2022 at 06:44hrs | Views
The Reserve Bank of Zimbabwe (RBZ) today said it will release an additional 2 000 gold coins this week, after the initial batch was highly subscribed.

The Mosi-Oa-Tunya coins, which came into the market last week, were introduced to assist in diminishing the appetite by local companies and individuals for buying United States dollars on the parallel market as a store of value.

In a statement, RBZ governor Dr John Mangudya said a total of 1 500 gold coins of the initial batch of 2 000 were sold by the Bank's agents during the first week of sale.

He said 85 percent were bought in local currency and the balance in foreign currency.

"An additional 2 000 gold coins will be released into the market during the week commencing 1 August 2022," he said.

Their immediate impact has seen parallel market rates of the USD fall to around USD1: ZW$700 having peaked at around USD1:ZW$950.

Mangudya said month-on-month inflation declined from 30.7 percent in June 2022 to 25.6 percent in July 2022.

The progressive decline was envisaged to continue in the outlook period as a result of the tight monetary policy stance being pursued by the bank.

"The Monetary Policy Committee also noted that the disinflation trend will be reinforced by measures the Government was taking to deal with factors that destabilise the foreign exchange market, particularly by reviewing the basis and framework for payments to its suppliers of goods and services in its quest to stabilise the foreign exchange market and enhance value for money," he said.

"The tight monetary policy stance would be buttressed by the favourable uptake of gold coins which were introduced in the economy on 25 July 2022 as an alternative stable financial product for store of value."

At launch, the coins were selling for US$1 823.80 or ZW$805 745.35 per coin.

The daily price of the gold coins is announced by the RBZ every morning based on the previous day's London Bullion Market Association gold price, plus five percent to cover production and distribution costs.

The gold coins are being sold through the RBZ and its subsidiaries, Fidelity Gold Refinery and Aurex, local banks and selected international banking partners.

Each coin has a unique serial number, weighs one troy ounce and has a purity of 22 carats.

Source - New Ziana
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