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Zimbabwe has launched gold coins to be sold to the public to address runaway inflation. www.trendsnafrica.com reported about the move to introduce the gold coin as a legal tender a few days ago since the local currency has become increasingly unstable.
Zimbabwe has launched gold coins to be sold to the public to address runaway inflation. www.trendsnafrica.com reported about the move to introduce the gold coin as a legal tender a few days ago since the local currency has become increasingly unstable.
The unprecedented move was announced recently by the country’s central bank. The aim of the Reserve Bank of Zimbabwe is to boost confidence in the local currency because of the runaway inflation and steady erosion of the local currency. That led to people dumping local currency. People who saved in local currency saw their savings wiped out by hyperinflation in 2008 which reached 5 billion%, according to the IMF. That memory still lingers on with the result that many retailers are refusing Zimbabwe’s currency. They prefer to go to the illegal market for scarce U.S. dollars to keep at home as savings or for daily transactions.
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The central bank disbursed 2,000 coins to commercial banks recently. The first batch of the coins was minted outside the country. Eventually, they will be produced locally. The coins can be used for purchases in shops, depending on whether the shop has enough change. Any individual or company can buy the gold coins from authorized agents such as banks using local or foreign currencies and purchasers can choose to keep the coins at a bank or take them home.
