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Zimbabwe’s central bank says it will start selling gold coins as a store of value this month to tame the runaway inflationwhich greatly weakened the local currency.
The coins will be sold in local currency, U.S. dollars and other foreign currencies from July 25, at prices based on prevailing international gold prices and production costs, central bank governor John Mangudia said in a statement on Monday. .
The central bank said the “Mosi-oa-tunya” coin, named after Victoria Falls, can be exchanged for cash and traded locally and internationally.
It added that the coin will contain one ounce of gold and will be sold by Fidelity Gold Refinery, Aurex and local banks.
Gold coins are used by international investors as a hedge against inflation and war.
Last week, Zimbabwe more than doubled its policy rate from 80% to 200% and outlined plans to make the dollar legal tender over the next five years to boost confidence.
Soaring inflation in the southern African country under veteran leader Robert Mugabe’s nearly four-decade rule has been weighing on a population already struggling with memories of shortages and economic chaos from years ago.
Annual inflation, which hit nearly 192 percent in June, cast a shadow over President Emmerson Mnangagwa’s efforts to revive the economy.
Zimbabwe ditched the inflation-affected dollar in 2009 in favor of foreign currencies, mainly the U.S. dollar. The government reintroduced the local currency in 2019, but it again quickly depreciated.
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