Zimbabwe is introducing gold coins
Inflation continues to rise in Rhodesia. As a result, the value of the native currency has declined. The govt. Is taking varied measures to regulate matters. As a part of this, the country's financial organization has taken the initiative to introduce gold coins as a medium of legal transactions by the tip of July.
According to the Guardian, inflation in Zimbabwe more than doubled last month to 191 percent, a reminder of the 2000 inflation. At that time, the value of the country's currency was changed three times. However, the coin was finally abandoned in 2009.
The news came from various media outlets, including Reuters, The Guardian and The Sydney Morning Herald.
The country's financial organization governor, John Manguda, expressed optimism that the gold coin would act as Associate in Nursing charge per unit, which it'd cut back demand for the North American nation dollar within the country. The value of the native currency has fallen sharply because the dollar has gone up.
Manguda additional that the gold may be sold-out to the public with each native currency and different foreign currencies, together with the US dollar. In this case, the value of the gold coin is going to be determined to support the prevailing international price and cost.
The gold coin will be named after the waterfall 'Victoria Falls' or the locally known 'Mosi-WA-Tunar'. This currency can also be used to redeem local or international cash, which can be traded locally and internationally.
According to Reuters, the gold
coin in African countries Zimbabwe) can contain one troy unit (more than
thirty-one grams) of gold. These are sold-out by the country's Fidelity Gold
plant, Orex and native banks.
Meanwhile, the country's
citizens have reacted mixedly to the announcement of the introduction of gold
coins. "I don't trust it," said Ivan Mupachika, a local foreign
exchange trader. The central bank will seize a coin with my cash.”
Note that there is a crisis of
confidence in the central bank of Zimbabwe. This is because the financial
authorities have failed the credibility test before.
In 2008, the country
introduced 100 billion (Zimbabwe) notes. Many citizens have lost their savings
as a result of the dramatic fall of the Zimbabwean dollar. Some people have to
lose their pension. As a result, people started depositing money at home
instead of keeping money in the bank. Zimbabwe has moved away from the dollar,
which has been plagued by inflation since 2009. Instead, the country became
dependent on the US dollar. In 2019, the local currency was introduced again.
However, it also loses value quickly.
Sources: Reuters, The
Guardian, Fortune
