Zimbabwe launches gold coins as legal tender to tackle inflation
Tags: International News
Zimbabwe has launched new gold coins to be sold to the public to combat extreme hyperinflation.
The country's central bank, the Reserve Bank of Zimbabwe, announced this unprecedented move on July 25 to boost confidence in the local currency.
According to the IMF, confidence in Zimbabwe's currency is low after people's savings from hyperinflation reached 5 billion in 2008.
Confidence in Zimbabwean currency is already so low that many retailers do not accept it.
The central bank has distributed 2,000 coins to commercial banks.
Coins can be used for purchases in stores, depending on whether there is substantial change in the store.
Any individual or company can buy coins from authorized banks outlets.
About Gold Coins
The gold coins are called Mosi-oa-Tunya.
In the local Tonga language it refers to Victoria Falls.
The coins would have liquid asset status, meaning they would be able to be easily converted into cash and would be tradable both locally and internationally.
The coin may also be used for transactional purposes.
People can trade for cash only after holding the coins for at least 180 days.
President - Emmerson Mnangagwa
Capital - Harare
Official Name - Republic of Zimbabwe
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