THE Reserve Bank of Zimbabwe (RBZ) plans to make its Mosi-oa-tunya gold coins available as the bank’s Monetary Policy Committee (MPC) has approved the new investment instrument which it hopes will become an alternative to the United States Dollars, stabilise the nation’s economy and act as a store of value for local investors.
The Central Bank Governor John Mangudya in a statement announced the features of the gold coins which will be available for purchase in local and foreign currencies by July 25.
“The gold coins will be available for sale to the public from 25 July 2022 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.
“The coins will be sold through the Bank and its subsidiaries, Fidelity Gold Refinery (Private) Limited and Aurex (Private) Limited, local banks, and selected international banking partners. Entities selling the coins shall be required to apply to Know Your Customer (KYC) principles,” the statement read.
The Central Bank stated that the gold called “Mosi-oa-tunya” coins, named after Victoria Falls, weighs one troy ounce of gold (about 31 grams), equivalent to 22 carats, has cash value, and can be traded locally and internationally.
In addition, each coin has a serial number and upon purchase, buyers physically possess the coin and will be issued a Bearer Ownership Certificate.
Owners of the coin may keep it in the bank where a safe custody certificate/receipt will be issued.
Mosi-oa-tunya meets regulatory requirements for asset investments, it has transactional value, and will be used as collateral for loans and credit facilities – the Bank can also buy back the coin.
Gold Bars Worldwide cites other countries with gold coins such as South Africa’s ‘Krugerrand gold coins’, Australia’s ‘Australian Kangaroo’, the United States’ ‘American Eagle’, Canada’s ‘Maple Leaf’ and Austria’s ‘Vienna Philharmonic’.
Zimbabwe’s gold output jumped to 86.3 per cent in the first five months of 2022 to 13,171,58kg compared to 7,068,85kg in the corresponding period last year.
In 2019, Zimbabwean President Emmerson Mnangagwa’s administration launched a strategic roadmap for the $12 billion mining industry from which the gold sub-sector is expected to contribute $4 billion.
Zimbabwe’s new coins will be available for sale from 25 July in all currencies at a price based on the contemporary international gold price and the production cost.