RBZ releases 2000 gold coins
BUSINESS REPORTER
The Reserve Bank of Zimbabwe (RBZ) released 2000 Mosi-oa-tunya gold coins into the market on Monday as it gives investors an option to store value amid the depreciation of the Zimbabwe dollar.
Monday’s sale was at a price of US$1,823.80 per coin and ZWL$805, 745.35 using the Friday’s willing buyer willing seller rate.
RBZ governor John Mangudya said they have minted more than 2000.
“What we have taken to the market is 2000 to see how they fared. We have sufficient gold coins that are available to the market. Subsequent replenishment will be on a needs basis,” he said.
He said the first target of the gold coins is those with excess local currency balances that “are chasing foreign currency on the market”.
This comes as those with excess local currency balances such as government suppliers were accused of fuelling the parallel market in search of the greenback leading to the routing of the local currency.
The dollar is trading at ZWL$850 on the parallel market against ZWL$423.49 on the interbank market.
Mangudya said the central bank will release gold coins with lower gold concentration within a month to ensure “the rest of the public benefits”.
“People go to the parallel market looking for a store of value. It’s an alternative for them not to go to the parallel market. Gold is known to be a reserve asset,” he said.
Mangudya said the central bank has received inquiries from outside Zimbabwe but could not be drawn into revealing the names of the international financial institutions that have expressed interest in the coins.
The gold coins will be purchased at the prevailing international spot price of gold.
On redemption, both residents and non-residents (international buyers), will have a choice to request payment in (US$) or (ZWL$).
The gold coins have liquid asset status, prescribed asset status, can be used as collateral, tradable and can be bought at the instance of the holder.
Last month, Mangudya announced that gold coins would be introduced into the market as an instrument that will enable investors to store value.
