Friday, March 1, 2024

Zimbabwe’s gold coins that are to tackle soaring inflation

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Staff Writer
Staff Writer
Africa Feeds Staff writers are group of African journalists focused on reporting news about the continent and the rest of the world.

Zimbabwe has launched gold coins as part of efforts to control high inflation and a weak national currency.

Interest rate has doubled in July alone to 200% with annual rate of inflation rising above 190%.

The coin called “Mosi-oa-Tunya” means “The Smoke Which Thunders”. It refers to Victoria Falls, on the border between Zimbabwe and Zambia.

According to the country’s central bank the coins will be priced at the international market rate with each going for an ounce of gold plus 5% for production costs.

An ounce is currently worth about $1,724. The governor of the Reserve Bank of Zimbabwe, John Mangudya told the media the coins can be used in shops, if they have enough change.

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Zimbabwe hasn’t had good fortunes with its currency for decades now. It abandoned its own version of the dollar in 2009 due to hyperinflation.

It then opted instead to use foreign currencies, mainly the US dollar. A local currency was reintroduced a few years ago but it has also rapidly lost value again.


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