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"RBZ Gold Coins Have To Be Made Available Exclusively In Zimbabwe Dollars, Not US Dollars"

Analyst Farai Mutambanengwe said if the Reserve Bank of Zimbabwe (RBZ)’s gold coins were to be sold in local currency they would provide a solution to the current inflationary challenges in the country.

The (RBZ) last week announced plans to introduce gold coins to be used as a new investment tool to store value for local investors.

The announcement followed a resolution agreed on by its Monetary Policy Committee (MPC) chaired by RBZ Governor Dr John Mangudya. The apex bank’s chief said in a statement:

The MPC resolved to introduce gold coins into the market as an instrument that will enable investors to store value. 

Mutambanengwe said selling gold coins exclusively in Zimbabwe dollars would create competition for the US dollar as the most popular inflation hedge and reduce its demand. Mutambanengwe said:

The gold coins will have to be made available exclusively in Zimbabwe dollars, not US dollars. They can have an issue price, but most likely they will develop a secondary market on which they trade. The ideal would be for the Government to insist on exclusive trade in Zimbabwe dollars and they can even be auctioned.

If I were RBZ Governor I would use the gold coins as a means of incentivising Zimbabwe dollar holding and investments, as well as managing Zimbabwe dollar liquidity, rather than as a means of mopping up US dollars.

I would issue them exclusively in Zimdollars so one would first have to liquidate US dollars for Zimdollars before buying them.

Mutambanengwe added that buying gold coins for investment must have the effect of allaying investors’ worry about loss of investment value as they can easily keep the gold coins safe at home for hundreds of years and still sell them for a good price when they eventually decide to.

Economist Dr Prosper Chitambara said the introduction of gold coins was a “noble” idea which has “worked before in other countries.” He added:

We know that with gold, one can never go wrong.

The gold coins will be minted by Fidelity Gold Refineries, Zimbabwe’s sole authorised buyer of gold, while the central bank indicated the precious coins would be sold to the public through normal banking channels.

The coins are introduced when the Zimbabwe dollar is losing value against other currencies, a trend that has seen members of the public and businesses losing value in the local currency.

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15 Comments

Chinese zodiac 1 month ago

Hooky😌


Gold Coins 1 month ago

muchazvirega henyu zvekundishandisa


mdara loli pop 1 month ago

aaaah ne corruption irimuno iyi kkk hameno kana zvikabuda bcoz once kana ava mu circulation chete, they can be easly traded with the USD


The Adjudicator 1 month ago

You can't store wealth in such a crumbling economy. Investors would store value in US$ rather than keeping it in those minted coins. The issue to store wealth is a good idea but not when things are unstable because the financial turmoil have got too many negative impacts on it. It was even actually better to only buy those coins in ZWL$ so as to strengthen it's value rather than using the US$. Potential investors and Business tycoons would opt to invest more in their money rather than storing in something that cannot add up profit. Only a handful of Zimbabweans are going to rush for those coins. The already unstable economy cannot provide an ambience for storing wealth within such a poor frustrating economy. Only the already rich can opt to store value than than the poor. The corrupt are going to take advantage of those coins to store the stolen and botched funds, what a way to promote corruption. The Corrupt used to invest hugely abroad and these minted shekels are going to reinforce their amassing of wealth.


Chimboti Pizza 1 month ago

@The Adjudicator, it's actually better to use gold coins for storing value rather than the USD because the USD, like any other currency, is not immune to inflation but the value of gold rarely ever changes

Law matrixist 1 month ago

@The Adjudicator
You are not remotely far away from the truth!
From today onwards l will forever follow you your Highness, my Judge!

Anonymous 1 month ago

Maonero anosiyana but if you are living on hand to mouth there is no need for that gold, what value yaunoda kuchengeta kutotenga food ne property wambogona here


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Tateguru 1 month ago

Noble idea


Sama's 1 month ago

I would rather store my money in these gold coins than US$. Imagine imba ikatsva kana mota I can recover the coins. US$ Mapaper ikatsva zvavharana you will only recover ash and unge watonyura. So long value ye gold isina kuchinja Im good to go.


Pa 22 1 month ago

Ko mari yandakatumira kuti muise marata pa pedroom makaishandisa chii?

Senzeni 1 month ago

Ko,haabiki here macoins acho?



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