With inflation nearing 200 percent, Zimbabwe’s central bank on Monday took an unprecedented step to use gold coins as legal tender. This is intended to restore public confidence in the South African country’s currency.
In the hyperinflation of 2008 (inflation was over 230 million percent at the time), Zimbabweans lost their savings. Since then, the demand for the scarce US dollar on the illegal market has been very high.
Like the South African Krugerrand, the coin will contain one troy ounce of gold and will be sold by local banks, among others. Owners of the coin cannot exchange it for cash until 180 days after purchase.
The gold coin’s price is based on the current international market price for a troy ounce of gold and the coin’s production cost, central bank governor John Mangudya said during their presentation on Monday.
The “Mosi-oa-tunya” coin – named after the national park of the same name, which also houses the famous Victoria Falls – can be traded in cash both domestically and abroad, according to the central bank in Harare.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
