High Demand For Gold Coins A Positive Development - Mangudya
The Reserve Bank of Zimbabwe (RBZ) says nearly 500 out of the 4 000 small gold coins it introduced on 15 November 2022 have been purchased so far in their first week.
The central bank introduced gold coins, known as the Mosi-a-Tunya gold coins, to be used as a store of value by both individuals and companies.
This has resulted in the reduction of the excessive money supply since their introduction, according to RBZ governor John Panonetsa Mangudya as quoted by ZBC News. He said:
The high demand for gold coins is a positive move to the country’s fight against high inflation and going forward we are maintaining the status quo, there will be no excess liquidity that caused exchange rate instability like in the past.
In his Mid-Term Monetary Policy Statement released on Thursday, 11 August 2022, central bank governor John Mangudya 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.
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