Zimbabwe launches gold coin as legal tender to tackle inflation and boost currency
- The central bank of Zimbabwe, the Reserve Bank of Zimbabwe, has announced the launch of gold coins as legal tender, to tackle the situation of increasing inflation in the country, and boost confidence in the local currency..
- The coin will be called Mosi-oa-Tunya, which refers to Victoria Falls in the local Tonga language.
- The coins will have liquid asset status, which will make it capable of being easily converted to cash, and will be tradable locally and internationally.
- The central bank also disbursed 2,000 coins to commercial banks.
- Any individual or company can buy the coins from authorised outlets such as banks.
- The decision to launch the gold coin as legal tender was taken by the government to moderate the very high demand for the US dollar, as the high demand is not being matched by supply.
Source: Business Standard