Reserve Bank of Zimbabwe has Initiated Gold Coins to be Sold to the Public in a bid to Repress Uncontrolled Inflation

By Abdul Rahman Bangura–

Photo Credit: Facebook

NEW AFRICA BUSINESS NEWS (NABN) Freetown, Sierra Leone – Since trust in Zimbabwe’s moolah is bad after people saw their savings snuffed out by hyperinflation in 2008 that attained five billion per cent, according to the IMF, some Zimbabweans crave to rush on the illegal market for scarce US dollars to keep at home as savings or for daily transactions.

The Central Bank expended 2,000 coins to Commercial Banks on Monday July 25th, 2022. The first batch of the coins was coined outside the nation but ultimately, they will be generated locally, according to the Governor of the
Reserve Bank of Zimbabwe – John Mangudya.

“The government is striving to mediate the high demand for the US dollar because this high demand is not being matched by supply,” Zimbabwean Economist Prosper Chitambara stated.

“The expectation is that … there will also be moderation in terms of the depreciation of the local currency, which should have some kind of stabilizing effect in terms of pricing of goods,” he noted.

Each person or corporation can purchase the coins from legal outlets such as banks and can maintain the coins at a bank or take them home, according to an announcement by the nation’s Central Bank. Foreigners can only buy the coins in foreign currency, the Central Bank expressed.

…“will have liquid asset status, that is, it will be eligible of existing effortlessly modified to cash, and will be tradable locally and internationally. The coin may also be utilized for transactional purposes”, the Central Bank noted. People
carrying the coins can only trade them for cash after 180 days from the date of buying, according to the Reserve Bank of Zimbabwe.