This month, Zimbabwe will begin selling gold coins to combat rampant inflation that has crippled the local currency.
The 15 million inhabitants of the southern African nation are experiencing shortages and other economic difficulties, evoking memories of hyperinflation.
The move was announced by the central bank governor, John Mangudya, on Monday, amidst economic difficulties in the southern African nation.
According to the central bank, the gold “Mosi-oa-tunya” coins – named after Victoria Falls – will contain one troy ounce of gold (approximately 31 grams) and can be converted to cash and traded locally and internationally.
Globally, investors use gold coins as a hedge against inflation and war.
The new coins will be available for purchase on July 25 in local currency, US dollars, and other foreign currencies at a price determined by the current international price of gold and the production cost.
It comes at a time when the country’s 15 million people are struggling with shortages and soaring inflation, evoking memories of economic chaos during Robert Mugabe’s nearly four-decade rule.
To boost confidence, Zimbabwe increased its policy rate to 200 percent from 80 percent last week and announced plans to make the US dollar legal tender for the next five years.
President Emmerson Mnangagwa’s efforts to revitalize the economy were cast into doubt by the June inflation rate of nearly 192%.
In 2009, Zimbabwe abandoned its inflation-ravaged dollar in favor of foreign currencies, primarily the US dollar.
The government of the country reintroduced the local currency in 2019, but its value has rapidly declined once more.
