Zimbabwe plans gold bullion coins to fight inflation
- Published: Jul 5, 2022, 8 AM
Zimbabwe, the nation famous numismatically for the $1 trillion bank note it issued in early 2009, plans to issue gold coins in an effort to stem inflation.
The Reserve Bank of Zimbabwe’s Monetary Policy Committee on June 24 decided to introduce gold coins “into the market as an instrument that will enable investors to store value,” Bank Governor John Mangudya announced June 27.
The gold coins will be minted by Fidelity Gold Refineries (Private) Limited and will be sold to the public through normal banking channels. No timeline for availability is announced, and it is unclear whether these would be official bullion coins with denominated values.
Fidelity Gold Refineries is owned by the national government, according to a news report in Al-Jazeera.
Inflation in June rose 30.7%, according to the June 27 announcement, bringing the annual inflation rate for 2022 to 191.6%.
Previous inflation woes
Zimbabwe’s official annual rate of inflation exceeded 231 million percent in 2008, according to the Dallas Federal Reserve Bank Annual Report of 2011.
The crisis culminated in the $100 trillion note issue of 2009 (with notes dated 2008).
These notes are popular, especially in the United States, among collectors fearful of inflationary woes here. Uncirculated examples trade for around $100.
After halting the issuance of its own paper money, Zimbabwe used other currencies, including those of neighboring South Africa, and the United States.
In addition, in 2014 the nation issued coins backed by money tied up in bonds, giving the series the name “Bond coins.” These coins are in from 1- to 50-cent denominations (a $1 coin was added in 2016) and were struck by the South African Mint.
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