Zimbabwe witnessed high demand for the gold coins it issued to combat inflation by offering the people an alternative to the U.S. dollar and giving the country’s currency a store of value.
Following the program’s July 25 debut, the nation’s central bank sold 1,500 gold coins, according to Governor John Mangudya, as cited by Bloomberg on Monday. Zimbabwe is now preparing to release 2,000 additional gold coins to the general people.
Each gold coin has a unique serial number and may be bought using local money, U.S. dollars, and other international currencies. The cost of production is taken into account while determining the pricing. According to the central bank’s website, each gold coin was selling for $1,841 as of Monday. The owners of the gold coins can exchange or cash them in at any time. The gold coins may be used as collateral for loans as well as for transactions.
“Government has clearly stated its intention of maintaining a multi-currency system based on dual use of the U.S. dollar and the Zimbabwe dollar,” Finance Minister Mthuli Ncube said last week.
Following the collapse of the Zimbabwe currency, the gold coins are intended to reduce demand for US dollars.
For the people of Zimbabwe, life has become challenging as a result of rising inflation and currency depreciation.
In June, the nation’s annual inflation rate was close to 192 percent.
Source: Kitco News