Smaller gold coin denominations out next week

Zim Now Writer

As efforts to stabilize the local currency and tame inflation continue, he Reserve Bank of Zimbabwe (RBZ) will on Tuesday release 4 500 small gold coins on November 15.

The smaller gold coins are expected to ensure ordinary people will have an opportunity to invest and store value in gold coins, according to RBZ governor John Mangudya.

“We will fulfil what we said earlier about the gold coins of smaller denominations to ensure that everyone has a chance to invest and store value in the gold coins.

“The response to gold coins has been positive, so, by introducing smaller denominations, demand is likely to increase and this will assist in mopping up liquidity from the market and enhance value of the local currency.”

Mangudya added that the Mosi-oa Tunya gold coins have been successful in mopping up excess liquidity in the economy.

The smallest coin, which will be sold in both local currency and United States dollars at a price based on the prevailing international price of gold, will be one-tenth of an ounce.

A 5 percent charge will be levied to cover the cost of production and distribution.

The RBZ introduced one-ounce gold coins in July this year.

Over 11 000 coins worth $11,4 billion have been sold to date, with corporates accounting for the biggest share.