malvernmugadzikwaBusiness Writer
RESERVE Bank of Zimbabwe (RBZ) yesterday released the first batch of 2 000 Mosi-oa-Tunya gold coins into the market following pronouncements made late last month.
The coins started selling at US$1 823 or an equivalent of $805 745 local currency. The RBZ will publish the gold price by 8:00 am every day.
According to RBZ, the gold coins price will be based on London Bullion Market Association (LBMA) precious metal fix from the previous day with an additional five percent to cover the cost of production and distribution.
Precious Metals Fix is a price indicator that is set and published on days when the precious metals market is actively trading.
Gold coins are being introduced into the market as part of measures to provide investors and the general public with alternative means to preserve value and hedge against the negative impact of resurgent inflation in the economy.
They will be purchased in a number of currencies including the Australian dollar, Botswana pula, British pound, South African Rand, and Euro.
Consistent with RBZ, local buyers including individuals may buy in local currency or foreign currency.
Domestic corporates including institutional investors will also be allowed to buy gold coins in local currency or foreign currency but will be subject to quantity restrictions where it is deemed necessary.
“Exporting entities shall buy Mosi-oa-Tunya gold coins in foreign currency, from their retained export portions.
“Notwithstanding this requirement, exporters whose annual export receipts in 2021 were less than US$1 million, shall require a specific Exchange Control approval to be permitted to utilise a portion of their surrender portion that is payable in local currency, to purchase the gold coins,” said RBZ Governor Dr John Mangudya.
The gold coins are expected to provide a formal means of saving and reducing illegal trade in foreign currency thus stabilizing the exchange rate.
Bongani Ndlovu