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Zimbabwe's president, Emmerson
Mnangagwa, in Kenya, in March. Annual inflation, which hit almost 192% in June,
has cast a shadow over his attempts to revitalise the economy. Photograph:
Yasuyoshi Chiba/AFP/Getty Images |
In
an effort to control the spiraling inflation that has severely devalued the
local currency, Zimbabwe's central bank will start selling gold coins this
month.
The
coins will be sold starting on July 25 in local currency, US dollars, and other
foreign currencies at a price depending on the current global gold price and
the cost of manufacturing, according to a statement from the governor of the
central bank, John Mangudya, on Monday.
The
Victoria Falls-inspired Mosi-oa-tunya currency may be exchanged for cash and
used for both domestic and international trade, according to the central bank.
According
to the statement, local banks, Aurex, and Fidelity Gold Refinery would all sell
the one troy ounce gold coin.
Gold
coins are used by investors internationally to hedge against inflation and
wars.
Last
week, Zimbabwe more than doubled its policy rate to 200% from 80% and outlined
plans to make the US dollar legal tender for the next five years to boost
confidence.
Rising
inflation in the southern African nation has increased pressure on a populace
already experiencing shortages and brought back unpleasant memories of the
economic disarray under Robert Mugabe's almost four-decade leadership.
President
Emmerson Mnangagwa's efforts to revive the economy have been hampered by annual
inflation, which reached about 192 percent in June.
In
2009, Zimbabwe gave up using its inflation-damaged currency and switched to
using other currencies, mostly the US dollar. The government reintroduced the
local currency in 2019 but it has rapidly lost value again.
Source: Reuters
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