First batch of gold coins now in circulation

By Owen Mandovha

FOR the first time in the country’s financial and economic history, Zimbabweans will possess gold coins as a store of wealth after the Reserve Bank of Zimbabwe released the coins onto the market this Monday.

The first batch of 2 000 Mosi oa Tunya gold coins have been released onto the market and in a media briefing at the Reserve Bank of Zimbabwe Headquarters, RBZ Governor Dr John Mangudya disclosed that they have been allocated to local banks, their subsidiaries and the central bank’s other units Homelink and Aurex.

Local agents commenced selling the gold coins on an agency basis at the initial price of US$1823.23 per gold coin or ZW$ 805,745.35. The Bank shall publish from tomorrow 26th July 2022 the Mosi oa Tunya gold coin price by 0800hrs daily which shall be based on the previous day’s London Bullion Market Association (LBMA) plus 5%,” he said.

Dr Mangudya outlined the key aspects of the gold coins, including security features.

“Denomination is 1 ounce material gold with purity 22 carats of 91.67 % with a diameter of 32mm. The gold coins have the following key features, liquid asset status, prescribed asset status and collateral acceptability,” he added.

The central bank Governor also added that the gold coins can be used as collateral among other functions.

The gold coins can be used as collateral to borrow money from banks and companies can also use them to invest their money,” noted Mangudya.

Enough coins have been minted and will be released depending on demand, with the RBZ set to cater for everyone’s savings needs.

“The Fidelity Printers and Refiners have minted sufficient coins but we will also establish how we will ensure that everyone has access to the coins which means we can produce a quarter ounce coin or 3 quartet ounce,” he explained

The central bank’s motive is to provide Zimbabweans with a genuine alternative savings instrument and a store of value a move that is expected to stabilise the value of the local currency.