RBZ releasing 2000 more gold coins this week
After successfully selling 1500 gold coins in the first week of trading, the Reserve Bank of Zimbabwe (RBZ) has reported that it will release an additional 2000 Mosi Oa Tunya gold coins this week as the demand for the coins accelerates.
Rudairo Mapuranga
In an effort to curb inflation and to save the local currency from collapse the central bank last month introduced gold coins which are sellable in both local and foreign currency. The Bank said the gold coins have proven to be a real deal factor in combating inflation and the collapse of the Zim dollar.
The gold coins were sold at an initial price of US$1 823, 80 per coin or $805 745,35 using the willing-buyer willing-seller rate through agents who include Aurex Zimbabwe, Homelink and all commercial banks.
According to RBZ, 85 per cent of gold coins were sold in the local Zimbabwean dollar while the remaining 15 per cent were sold in foreign currency, with the uptake proving that the coins can be a stable store of value.
“The MPC resolved to maintain the interest rates at current levels. The tight monetary policy stance would be buttressed by the favourable uptake of gold coins which were introduced into the economy on 25 July 2022 as an alternative stable financial product for store of value.
“A total of 1500 gold coins were sold by the Bank’s agents during the first week of their release into the market, with 85% having been bought in local currency and the balance of 15% in foreign currency. An additional 2000 gold coins will be released into the market during the week commencing 1 August 2022,” RBZ said.
The Reserve Bank said that month-on-month inflation declined from 30,7 per cent in June to 25,6 per cent in July 2022. It also noted that whilst monthly inflation is expected to continue to decelerate during the outlook period, annual inflation will continue to increase up to September 2022 as a result of the lower base effect in 2021.
“The Monetary Policy Committee (MPC) of the Reserve Bank of Zimbabwe (the Bank) met on 29 July 2022 to review the impact of the recent monetary policy measures on the economy. With month-on-month inflation having declined from 30.7% in June 2022 to 25.6% in July 2022, the MPC noted that the progressive decline will continue in the outlook period as a result of the tight monetary policy stance being pursued by the Bank. The MPC also noted that the disinflation trend will be reinforced by measures the government was taking to deal with factors that destabilise the foreign exchange market, particularly by reviewing the basis and framework for payments to its suppliers of goods and services in its quest to stabilise the foreign exchange market and enhance value for money. The MPC further noted that whilst monthly inflation is expected to continue to decelerate during the outlook period, annual inflation will continue to increase up to September 2022 as a result of the lower base effect in 2021,” reads RBZ Press Statement.