Zimbabwe releases gold coins to fight the country’s inflation
Zimbabwe has seen strong demand for the gold coins it issued to fight inflation by providing the people with an alternative to the US dollar and giving the country’s currency a store of value.
After the program began on July 25, the country’s central bank sold 1,500 gold coins, according to Governor John Mangudya, as quoted by Bloomberg on Monday. Zimbabwe is now preparing to release an additional 2,000 gold coins to the general public.
Each gold coin has a unique serial number and can be purchased in local currency, US dollars and other international currencies. The cost of production is taken into account when determining the price. According to the central bank’s website, each gold coin was selling for $1,841 on Monday. The owners of the gold coins can exchange or cash them at any time. Gold coins can be used as collateral for loans as well as for transactions.
“The government has clearly stated its intention to maintain a multi-currency system based on the dual use of the US dollar and the Zimbabwean dollar,” Finance Minister Mthuli Ncube said last week.
Following the collapse of the Zimbabwean currency, gold coins are intended to reduce the demand for US dollars.
For the people of Zimbabwe, life has become difficult due to rising inflation and depreciating currency.
In June, the country’s annual inflation rate was close to 192%.
Source: Kitco News