Zimbabwe Launches Gold Coin To Curb Inflation

Zimbabwe Launches Gold Coin To Curb Inflation

 Recently Zimbabwe launched gold coins named 'Mosi-oa-Tunya' to control inflation. The Reserve Bank of Zimbabwe announced the launch and distributed 2,000 coins to commercial banks. The annual inflation rate rose to 190% in July 2022 and thus the central bank's interest rate doubled to 200%.

 Zimbabwe has been facing high inflation for the past decade. Efforts are being made to control it in many other ways. The Zimbabwean dollar declined in value against major currencies in 2022. As a result, the black marketing of US dollars by citizens in Zimbabwe started. Thus, Zimbabwe launched new gold coins to control dollar’s black marketing.

Gold Coins

 The gold coin is called 'Mosi-o- Tunya'. It means 'The Smoke Which Thunders'. It also refers to Victoria Falls in the native Tonga language. These coins have been given the status of liquid assets. Thus they can be easily converted into cash. They are easily tradable both locally and internationally.

 These coins can be used by individuals or companies. They can buy coins from banks and other authorized outlets. Foreigners can also buy coins, however, only in foreign currency. Coin holders can trade coins for cash, after 180 days from the date of purchase. The price of gold coins will be determined on the basis of the international market rate for one ounce of gold.