Sundaymail Editor
Debra Matabvu
THE Reserve Bank of Zimbabwe (RBZ) has sold over 25 000 Mosi-oa-Tunya gold coins worth $20 billion over the past six months, a move that has buttressed price and exchange rate stability, bringing relief to consumers.
Since July 2022, 15 526 one-ounce gold coins have been sold, while 9 662 smaller denominations have been traded from November last year to January 2023.
In his Monetary Policy Statement last week, RBZ Governor Dr John Mangudya said the gold coins had made a positive impact on the economy.
“The bank introduced gold coins in July 2022 as both an alternative retail investment product for value preservation in the dual currency system and a liquidity-mopping instrument, over and above the foreign exchange auction system.
“The gold coins have been well-received, with 25 188 coins valued at $20 billion having been sold as at 13 January 2023.
“The bulk of gold coins, 84 percent, were bought by corporations, while purchases by individuals accounted for 16 percent,” he said.
Smaller denominations accounted for 38 percent of all sales.
“The bank will continue to avail gold coins on a demand-driven basis, as it seeks to promote a savings culture and provide alternative investment instruments to the public in the dual currency system.”
Economist and member of the RBZ Monetary Policy Committee Mr Persistence Gwanyanya said gold coins had achieved the intended purpose of being an alternative investment that fosters stability and reduces inflation.
“From August, we started noticing the local currency stabilising.
“There were only a handful of coins but they made a significant impact,” he said.
“For the ordinary person, the gold coins were for value preservation, but, more importantly, it was a way of mopping up excess liquidity.
“We have realised that people have confidence in the gold coins and, as of January 28, no one had redeemed their cash, even after they had matured, meaning people prefer to keep the coins. This shows that this move could become a permanent sterilisation benefit.”
Economist Mr Eddie Cross said gold coins had played an important role in storing value.
“As a store of wealth for domestic investors, I think it has been a substantial step forward. It allows people to convert their money into something that holds value.
“What we should have done is to try and make money out of the exercise,” he said.
“In South Africa, the rand gold coin has been used for many years, and they sell through the rand system at a substantial price to the market.
“It also makes sense to add value to our gold production.”
In July last year, Government introduced one-ounce gold coins, while smaller denominations – ranging from one-tenth of an ounce to one ounce – were introduced in November 2022.
The gold coins are available for sale in both local currency and United States dollars at a price based on the prevailing international price of gold plus 5 percent to cover the cost of production and distribution.
Investors can redeem their cash after 180 days.
Tinaye Agere
Online Reporter