RBZ sells 6800 gold coins
…Holds bank policy rate steady at 200%
BUSINESS REPORTER
The Reserve Bank of Zimbabwe (RBZ) has sold 6800 gold coins as it mops excess local currency balances amid price stability expectations.
The gold coins debuted on July 25 as the central bank moves to shore up the local unit, which had been at the receiving end of major currencies such as the greenback on the thriving parallel market.
“As at 26 August, a cumulative total of 10,000 gold coins had been minted out of which 8076 had been distributed to the bank’s agents for sale. A total of 6799 gold coins had been sold as at 26 August with 75% having been bought by corporates and 25% by individuals,” central bank chief John Mangudya said in a statement following the August 26 Monetary Policy Committee meeting.
“95% of the gold coins sold were purchased in local currency and the balance in foreign currency.”
Mangudya said the MPC noted the decline in the August month on month inflation to 12.4% from 25.6% in July saying the drop was expected, adding that the annual inflation is expected to reach an annual peak in September due to the lower base effect in 2021.
“On the back of the tight monetary stance pursued by the bank, the official and parallel market foreign exchange rates are expected to converge in the outlook period, thereby fostering price stability and exchange rate expectations,” he said.
The MPC maintained the bank policy rate at 200% and hold steady the Medium Term Accommodation interest rate at 100% per annum.
