Zimbabwe Central Bank set to launch Gold coin sales

By: Henry Felix

July 12, 2022 10:37 PM

In the near future, Zimbabwe citizens will be able to buy physical gold coins which will be weighing one troy ounce each and can be used as an alternative store of value within the country.

The Zimbabwe central bank announced that starting on July 25, citizens of the country will be able to buy gold coins which can be traded and used as “security for loans and other credit functions.”

Reserve Bank of Zimbabwe (RBZ) released a statement on July 4 educating “the public of the salient features and characteristics of the proposed new gold coin.” According to the statement by the central bank, the public will be able to buy the gold coins “at a global price of gold.”

The gold coins have been named Mosi-Oa-Tunya, which is equivalent to 'Victoria falls' in their native language. the coin will weigh one troy ounce or approximately 31.10 grams. Each gold coin has a purity of 22 carats and will be assigned a serial number for identification.

According to a previous statement made by the Zimbabwe Central Bank, the gold coins will be used alternatively as store of value by Zimbabwean investors that are seeking to preserve their savings against the country’s inflation.

However, according to Zimbabwe laws only authorized individual or organizations are allowed to own or sell Gold to Fidelity printers and Refiners, the only legally approved gold buyer in the country. Meanwhile, such laws are subject to change after the central bank's recent decision as Zimbabweans can now purchase, own or trade the newly proposed gold coins.

Holders of the gold coins to Be Issued Ownership Certificate

Nevertheless, in the statement that also informs residents of the places where they can purchase the gold coins, the central banks assures investors that buying the gold coins they will be allowed to possess the coin physically. Additionally, the statement also states that gold coin holders will be issued a “Bearer Ownership Certificate.”

The RBZ said that for Financial Institution and Organizations, the coin will have liquid asset status, which will be tradable locally and internationally while also can be easily converted to cash. RBZ has a buy-back structure in place should any holder decide to liquidate the coin.