As of this month, Zimbabwe will commence selling gold coins as a store of value at a time its currency is weakening considerably a factor that has seen the living cost shoot high and out of reach for many citizens.
Gold coins in Zimbabwe known as Mosi-oa-Tunya renamed after the Victoria Falls, are now going to be an alternative investment option to the US Dollar as a store of value.
John Mangudya, Central bank governor said, “the coins would be available for sale from July 25 in local currency and United States dollar at a price based on the prevailing price of gold.”
This comes amid the local currency losing value rapidly against the US Dollar which has led to unrest among the country’s labor force as workers demand to be paid in foreign currency.
Soaring inflation in the southern African country has raised the cost of living sharply with the Zimbabwe National Statistics Agency saying annual inflation rose to 191.7 percent in June compared to 131.7 percent recorded in May.
The Gold coins according to Dr. Mangudya are going to reduce the pressure on the US dollar in the open market which can be attributed to the depreciation of the Zimbabwe dollar.
Dr. Mangudya said, “As you are aware, the US dollar has largely been used for two things; for the importation of goods and store of value. The gold coins will provide an alternative investment option to the US dollar as a store of value.”
The Zimbabwean Central Bank boss added that the coins will contain one troy ounce of gold and will be sold through normal banking channels at gold market prices.
Urging that investors who will purchase gold coins will be able to preserve value and make good profits when gold prices rise.