Zimbabwe: Reserve Bank to Release Smaller Gold Coins in November

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Zimbabwe: Reserve Bank to Release Smaller Gold Coins in November
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Reserve Bank to Release Smaller Gold Coins in November TheExchangeEA: Zimbabwe

"Following the successful launch of the gold coins on July 25 2022 and in response to public demand, the bank shall introduce and release into the market gold coins in smaller units of a tenth ounce, quarter ounce, and half an ounce for sale with effect from mid-November 2022," he said.

The smallest coin, containing just over 3.11 grams of gold, will cost US$188.48, or local currency equivalent at the interbank rate, at one-tenth of yesterday's price of the one-ounce Mosi-oa-Tunya. The actual price when it is introduced will be the world price of gold for one-tenth of a troy ounce plus a five per cent minting and distribution fee.

Yesterday the one-ounce coin cost US$1 884.80 or $936 589.89, and few ordinary people have that sort of money in their bank accounts. "As such, it is pertinent that a cheaper option is availed for those who seek to hedge their savings against inflation, but are unable to afford the current cost." The central bank kept the policy rate at 200 per cent saying it would be reviewed in line with developments in monthly inflation. The high rate is to ensure that it is not viable to borrow local currency to speculate in the black market or even buy gold coins.

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