Gold coins to attract five percent surcharge
A MINIMUM five percent surcharge, covering production costs, will apply on gold coins, which will go on sale starting July 25, the Reserve Bank of Zimbabwe announced on Monday.
The gold coins, being introduced as an alternative store of value, will be sold both in USD and local currency at the prevailing international gold price.
RBZ governor, Dr John Mangudya, told Parliament that the additional charge will be on top of that determined by the prevailing gold price.
“We do not expect to charge anything above five percent,” he said.
Dr Mangudya said the gold coins were also expected to stabilise the exchange rate. They will be sold through the RBZ and its subsidiaries, Fidelity Gold Refinery and Aurex, local banks and selected international banking partners.
Dubbed the Mosi-oa-Tunya, each coin will have a unique serial number, weigh one troy ounce and have a purity of 22 carats.
“Upon purchase, the buyer shall take physical possession of the coin and be issued with a Bearer Ownership Certificate. The buyer or holder of the coin may opt to place it in the custody of bankers of own choice in which case a safe custody certificate/receipt will also be issued,” said Dr Mangudya.
In terms of liquidity and tradability, the coin will have liquid asset status, that is, it will be capable of being easily converted to cash and will be tradable locally and internationally.
The coin may also be used for transactional purposes and will also enjoy a Prescribed Asset Status, meaning that institutional investors can use it to meet regulatory requirements for prescribed asset investments.
“The coin can also be used as security for loans and credit facilities. At the instance of the holder, the Bank will buy back the coin. Entities selling the coins shall be required to apply Know Your Customer principles.” – New Ziana.