Zimbabwe will use 22 karat 1 troy ounce gold coins to counter high inflation.
On July 6, the BBC reported that Zimbabwe had said it would use the gold coin later this month. while trying to curb soaring inflation amid the slump in the currency Zimbabwe’s central bank outlines plans to make the US dollar a legal settlement in the next five years.
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So 1 #MosiOaTunya will cost > USD1800 which is > ZWL1000000.
That means not all will afford it.
For the few that will do I foresee them wallowing in arbitrage paradise.
Talk of unintended consequences. Or is it intended?@daddyhope @advocatemahere @zanupf_patriots @CCCZimbabwe pic.twitter.com/HjEVH21Fn5— Joel Chabata (@joelchabata) July 5, 2022
Bank of Zimbabwe Governor John P. Mancudya said in a statement that gold coins to be sold from July 25 consist of 22 karat gold, weighing 1 troy ounce, or 31.10 grams, the unit used to weigh the metal. Precious things like gold, silver and platinum date back to the Middle Ages.
“Gold coins are sold to the public in both local currency. (Zimbabwe Dollar) and US Dollar and other foreign currency at prices based on international gold prices and production costs,” Mankudya said in a statement, adding that each coin was identified by a serial number. (serial number) and can be easily converted to cash at home and abroad.
The gold medal will be named The Mosi-oa-Tunya Gold Coin, which means “The Smoke Which Thunders”, refers to the Victoria Falls located on the border between Zimbabwe and Zimbabwe. Zambia
The announcement is part of the Zimbabwean government’s measures to tackle the country’s currency crisis. after last month Annual inflation has hit 191.6 percent, while the Zimbabwean dollar has lost more than two-thirds of its value against the dollar since the beginning of 2022.
In addition, as of July 1, Zimbabwe’s central bank’s main interest rate has been raised from 80 percent to 200 percent annually to deal with rising costs of living.
The Zimbabwean
Rising inflation has put pressure on President Emmerson Mnangagwa in Zimbabwe, a country that still remembers economic chaos. Under President Robert Mugabe’s rule for nearly four decades.
Extreme inflation at the time forced Zimbabwe to abandon the 2009 Zimbabwe dollar and opt for a foreign currency instead. especially the US dollar and during the worst of the crisis The government has officially stopped publishing inflation figures. But one set of assessment data indicates that The inflation rate is 89.7 percent. Trillion trillion trillion Zimbabwe. Compared on an annual basis in mid-Nov. 2008
At the time, the $100 billion Zimbabwean banknote was seen as a symbol of the country’s economic collapse. And although the Zimbabwean dollar was reintroduced a decade later, But again quickly lost its value.
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