Date set for deployment of Zimbabwe gold coins

The GOLD coins which were announced last week as a new measure and an alternative to store monetary value, will be introduced in the market in the middle of this month and will be purchased in foreign and local currencies.

Moreover, the coins will be redeemable locally and outside the country as the authorities have already engaged international financial partners on the new development.

Ever since the government announced it would introduce gold coins to be minted by the Reserve Bank of Zimbabwe’s Fidelity printers and refiners, there has been much speculation about how the new monetary measures will work.

When the government announced the new measures, it noted that gold coins would be an investment instrument that would allow investors to store value. They are expected to provide residents with an alternative investment instrument.

RBZ Governor Dr John Mangudya told Sunday News in an interview yesterday that contrary to claims that gold coins will only be purchased in USD, they will also be available for those wishing to purchase in currency. local.

He said the coins will be purchased in “all currencies in circulation in Zimbabwe, including Zimdollar”.

“Basically, the gold coins will be an instrument for storing value and they can be purchased in foreign and local currencies. Once minted, they will be distributed by Fidelity Printers and Refiners, local banks and international banking partners that we will announce on time.

“These gold coins will be usable both locally and internationally as we have engaged with international banking partners. What I must emphasize is that gold is gold and has value. international.”

He said those who buy the coins will also receive bearer certificates.

“Since these coins are basically for storing value, they can be used for trading purposes and can also be used as collateral. The buyer can also convert them into cash if needed.

“Our starting point for purchases will be one ounce of gold which will be around 22 carats,” he said.

Dr Mangudya also attacked unscrupulous individuals who circulated images claiming to be gold coins on social media, revealing that samples have not yet been released.

“As we said, these coins will be minted at Fidelity Printers, who will be in charge of distribution with banks and international banking partners. The images that have been circulating are false and the public should remain guided.

For now, Fidelity has been given the green light to start minting the coins, so we expect the coins to be available in the market by mid-July,” Dr. Mangudya said.

According to reports online, a gold coin is composed mostly or entirely of gold. Most gold coins minted since 1800 are 90-92% gold, while most gold coins today are pure gold, such as the Britannia, Canadian Maple Leaf, and Gold. ‘American Buffalo. Generally, gold coins have been used as an investment instrument all over the world.

A sizable population in global economies consider gold as an alternative to currency and gold coins are deemed to be a low risk investment option as they provide better security especially in cases where the local currency loses its value.

In other countries, gold coins have not only been used as a mechanism to control inflation or stabilize the currency, but have also been used as investment vehicles.

Meanwhile, some wholesalers and retailers in Bulawayo and Harare are hurting consumers by pricing some commodities strictly in foreign currency and refusing to accept local currency, a situation that has been described as unfortunate as consumers are now forced to go to the black market for secure foreign currency.

Some manufacturers of the goods, however, access foreign currency through the RBZ auction system. This followed the government’s announcement that it was now officially adopting a multi-currency system which would see the US dollar used alongside the local currency until 2025. The Deputy Minister of Finance and Economic Development, The Honorable Clemence Chiduwa, confirmed having received such reports.

“Indeed, it is very true, we have received reports of wholesalers and such business entities who come to auction. They get money to buy their goods in US dollars but do not take local currency. collaboration with the Financial Intelligence Unit, our department was seized of the matter,” he said.

However, the President of the Retailers Confederation of Zimbabwe, Mr. Denford Mutashu, defended the position of the retailers saying that their source of foreign currency determines how they price their products.

“We are in a multi-currency system and ZWL$ and USD are official legal tender. Retailers and wholesalers price goods and services based on the currency they use to source from Very few manufacturers and suppliers can release goods in local currency as a way to use their product to stock up on foreign currency and increase the one they get from the auction, which on average constitutes 20-40% of their total needs. Instead of buying foreign currency from the parallel market, companies use their proceeds to source foreign currency as a means of survival,” he said.

Mr Mutashu said pricing systems were informed by market realities and retailers were not entirely out of order.

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