RBZ stops gold coin sales

Nqobile Bhebhe

THE Reserve Bank of Zimbabwe has called time on the sale of gold coins, officially suspending the mop-up exercise after successfully clearing the remaining stock.

RBZ Governor Dr John Mushayavanhu confirmed the move in a statement yesterday, describing it as the conclusion of a targeted strategy to absorb excess liquidity and give investors a stable value preserving option.
“The Reserve Bank of Zimbabwe wishes to advise the transacting public that the mop-up sale of gold coins has been suspended with immediate effect following the successful completion of the exercise,” said Dr Mushayavanhu.

He made it clear that this was not a return to minting gold coins, which had already been halted in April 2024.
“This was a sale meant to clear remaining stock and not the minting of new gold coins. The latest round also included coins redeemed by holders,” he said.

Gold coins were introduced in 2022 as a monetary policy tool to fight inflation by mopping up excess cash while offering investors a hedge against value erosion.

They became a hit with both institutional and retail investors, prompting the central bank to later roll out larger denominations to accommodate cash rich players.

Dr Mushayavanhu added that future gold coin sales will only resume when a sizeable volume is accumulated through redemptions.
“Investors are advised that gold coins in the market remain tradeable and redeemable,” he said.

The RBZ also used the moment to reiterate its commitment to rolling out diverse financial instruments to deepen savings and support monetary policy goals.
“The Reserve Bank would like to reaffirm its commitment to continuously avail alternative financial market instruments to promote savings and achieve its monetary policy objectives,” read the statement.

Initially sold in both local and foreign currency at prices linked to global gold rates plus a five percent margin, the coins were meant to give Zimbabweans a reliable investment shelter amid economic turbulence.

Now that the shelves are empty, the central bank is turning the page but the gold legacy remains in the hands of investors.