RBZ To Release Gold Coins In Smaller Units

The Reserve Bank of Zimbabwe (RBZ) says it will introduce into the market smaller units of gold coins in mid-November 2022.

In his Mid-Term Monetary Policy Statement released on Thursday, 11 August 2022, central bank governor John Mangudya said the introduction of gold coins in smaller units is in response to public demand. He said:

Following the successful launch of the gold coins on 25 July 2022 and in response to public demand, the Bank shall introduce and release into the market gold coins in smaller units of a tenth ounce, quarter ounce and half an ounce for sale with effect from mid-November 2022.

The features, characteristics and the sale terms and conditions shall remain the same as the current trading arrangements of the gold coins in circulation.

Mangudya reiterated that the foreign exchange auction will remain in place and become the most ideal allocative platform of foreign currency in the domestic economy. He said:

The foreign exchange auction remains a critical platform on which industry and commerce access foreign exchange.

The auction bids will continue to be guided by the exchange rates obtaining on the willing-buyer willing-seller foreign exchange trading platform and by the available foreign currency.

In this context, the foreign exchange auction system is no longer a price discovery mechanism but instead the most ideal allocative platform of foreign currency in the domestic economy given the geo-political constraints facing the local banking industry to establish an efficient interbank foreign exchange market.

The central bank chief also reviewed the transaction limit under the willing-buyer willing-seller foreign exchange trading system from US$10 000 to US$20 000 per transaction per week. Said Mangudya:

The limit for qualifying transactions under the willing-buyer willing-seller foreign exchange trading system has, with effect from 15 August 2022, been increased from US$10 000 to US$20 000 per transaction per week.

Qualifying foreign exchange payments under this mechanism will cater for transactions for goods and services such as raw materials, capital goods, medical expenses, education expenses (including student upkeep), business and holiday travel, airfares and subscriptions.