The Reserve Bank of Zimbabwe (RBZ) says about 4500 small denominated gold coins should be available for purchase by the public from local banks starting next week Tuesday as the Bank intensifies mopping up excess liquidity in the market.
Authorities introduced the Mosi-oa- tunya gold coins in July this year at the height of exchange rate movements which battered the local currency owing to excess liquidity in the market.
This has provided locals with liquidity an alternative investment asset to store value outside the scarce US dollar currency.
“As advised in its Mid-Term Monetary Policy Statement of 11 August 2022, the Reserve Bank of Zimbabwe wishes to advise the public that it will from 15 November 2022 release into the market gold coins in smaller units of a tenth of an ounce, quarter ounce and half ounce,” said the RBZ in a statement on its website.
“The sale terms and conditions of the smaller units of gold coins shall remain the same as those for the one-ounce gold coins that have been in circulation since 25 July 2022.”
Addressing mining stakeholders at the launch of the State of the Mining Sector Report yesterday, RBZ Governor Dr John Mangudya said 4500 small gold coins will be released to local banks starting tomorrow.
He however could not divulge details on the purchase price per unit of the small coins. Currently, the price of the gold coin is US$ 1801.01 or ZW$ 1,194,901.19.
“So why are we doing this, so that we do not leave no-one behind and any place behind because we know that the bigger denominations were elitist and we have listened and therefore we are bringing these smaller denominations,” said Dr Mangudya.
The Central Bank said the Bank or its agents will buy back the gold after a period of 180 days at the discretion of the holder in line with the spirit of promoting savings culture in the country.
Since their introduction in July this year, the Central Bank has sold more than 11 000 Mosi-ou-tunya valued at $ 11.4 billion.