limukaniCharity Chikara
Sunday News Correspondent
The Reserve Bank of Zimbabwe (RBZ) has recorded a favorable uptake of gold coins having recorded a total sale of 6 799 gold coins as of 26 August 2022.
The Monitory Policy Committee on Friday met to review the impact of the recent monetary policy measures that have seen the decline of month-on-month inflation rate by over 25 percent in July and 12 percent in August.
In the statement released by the Reserve Bank of Zimbabwe on Tuesday, the Monetary Policy Committee (MPC) said the uptake of gold coins has been satisfactory as the total number of gold coins sold out has galloped to 6 799.
“As of 26 August 2022, a cumulative total of 10 000 gold coins had been minted and out of which 6 076 gold coins had been distributed to the Bank’s agents for sale. A total of 6 799 gold coins had been sold as at 26 August 2022, with 75% having been bought by corporates and 25% by individuals. Ninety-five percent of the gold coins sold were purchased in local currency.
“The MPC noted with satisfaction that a combination of the tight monetary policy stance was favorable to the uptake of gold coins. Effective monitoring and enforcement of market discipline by the Financial Intelligence Unit (FIU) and the review and enhancement by Government of its procurement process and practices to ensure value for money had resulted in the stability of the exchange rate and a decline in inflationary pressure,” read the statement.
As a result of the tight monetary policy, the enforcement of price stability and exchange rate stability is expected.
“To ensure sustained exchange rate and inflation stability in the economy, the MPC resolved to maintain the tight monetary policy stance, while ensuring adequate support to the productive sectors of the economy, in particular primary agriculture, agro-processing and small to medium enterprises (SMEs),” read part of the statement.
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