The Reserve Bank of Zimbabwe has launched gold coins namely “ Mosi- oa- Tunya ’ to be sold to the public in order to attack inflation and to boost confidence in the local currency.
In this regard, the central bank of Zimbabwe disbursed,2000 coins to commercial banks.
The coins, each weighing one troy ounce have a purity of 22 carats.
Meaning of Mosi- oa- Tunya
In the local Tonga language, it refers to Victoria Falls. The coins will have liquid asset status, means they can be easily converted to cash, and will be tradable locally and internationally.
Reason behind this mover
The people’s trust in Zimbabwe’s currency diminished after their savings were wiped out by hyperinflation in 2008 which raached 5 billion. After that the people of Zimbabwe started preferring to scramble on the illegal market for scarce US( United States) dollars to keep at home as savings or for daily transactions.
Now, the Government of Zimbabwe is trying to moderate the very high demand for the US dollar because this high demand isn’t being matched by supply.
- The first batch of the coins was minted outside the country but ultimately they will be produced locally.
- Mosi- oa- Tunya can be used for transactional purposes, security for loans, purchases in shops and credit facilities, among others.
- People holding the coins can only trade them for cash after 180 days from the date of buying.
- Any individual or company can buy the coins from authorized outlets such as banks using the local currency or foreign currencies and purchasers can choose to keep the coins at a bank or take them home.
- Foreigners can only buy the coins in foreign currency.
The price of the coins will be determined by the international market rate for an ounce of gold. plus 5 % for the cost of producing the coins.
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