Zimbabwe’s central bank said it would start selling gold coins this month as a store value to tame runaway inflation, which has considerably weakened the local currency.
The Central bank governor John Mangudya said in a statement on Monday, the gold coins would be available for sale from 25 July in local currency. U.S. dollars and other foreign currencies at a price based on the prevailing international price of gold and the cost of production.
The “Mosi-oa-tunya” coin, named after Victoria Falls, can be converted into money and traded locally and internationally, the central bank said.
The gold coin will contain one troy ounce of gold and will be sold by the local banks, Aurex and the Fidelity Gold Refinery, it added.
Last week, Zimambwe more than doubled its policy rate to 200% from 80% and outlined plans to make the U.S. dollar legal tender for the next five years to boost confidence.
Gold coins are used by investors internationally to hedge against wars and inflation.
Souring inflation in the Southern African country has been piling pressure on a population struggling with shortages and stirring memories of economic chaos for years ago under the leadership of Robert Mugabe who ruled for nearly four decades.
Annual inflation which hit almost 192% in June, cast a shadow on President Emmerson Mnangagwa’s bid to revitalise the economy. Zimbabwe abandoned its inflation-ravaged dollar and opted to use foreign currencies, mostly the US dollar. The government reintroduced the local currency in 2019, but it quickly lost value again.
