Vusumuzi DubeJudith Phiri, Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has released the guidelines and a list of documents needed for the purchase of the Mosi-oa-Tunya gold coins which will be available for sale to the public from 25 July.
The gold coins will be sold in both local currency (ZW$) and United States Dollars (US$) (and other foreign currencies) at a price based on the prevailing international price of gold and the cost of production.
According to the Central Bank, they will appoint agents that include Authorised Dealers (banks), its subsidiaries and foreign banks that will be responsible for selling the gold coins on its behalf.
In a statement on Monday, RBZ said: “All sales of the gold coin by the agents will be subject to normal Know Your Customer (KYC) principles in line with international best practice, which include declaration of the source of funds.”
“The gold coins shall be sold at prevailing international price of gold plus 5 percent to cover the cost of production and distribution of the coin on a Payment vs Delivery basis.”
RBZ said the Bank shall publish the Mosi-oa-Tunya gold coin price by 0800 hours daily, which shall be based on the previous day’s London Bullion Market Association (LBMA) PM Fix plus the cost of producing the coin.
It said the Mosi-oa-Tunya gold coins shall be sold with an accompanying bearer certificate with security features.
The Central Bank said: “Agents shall sell the Mosi-oa-Tunya gold coins in both local currency (ZWL) and United States Dollars (US$) and other tradable/denominated foreign currencies at the willing-buyer willing-seller exchange rate. Denominated currencies for the purpose of buying gold coins will include the British Pound, the Euro, Australian Dollar, Botswana Pula and Rand.”
RBZ said upon receipt of the purchase price from the gold coin buyers, the Agent shall transfer to the Reserve Bank within 24 hours, the amounts received from purchasers in the currencies of purchase.
It also noted that selling arrangements shall apply for different buyers such as domestic buyers including individuals may buy in local currency or foreign currency.
RBZ added: “Domestic corporates including institutional investors will be allowed to buy gold coins in local currency or foreign currency, 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.”
It said local banking institutions shall not be allowed to buy Mosi-oa-Tunya gold coins for own portfolios up until such a time as the Reserve Bank may grant the permission.
“Thus, for the time being, banks can only receive the coins from the Reserve Bank for onward selling to their customers on behalf of the Reserve Bank; and non-resident (international) buyers shall only buy the Mosi-oa-Tunya gold coins in denominated foreign currencies.”
In terms of KYC documents for gold coin transactions, RBZ said all appointed agents should ensure that gold coins are sold to buyers where KYC and CDD assessments have been done.
Bongani Ndlovu