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.

Important facts

• 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.

About Zimbabwe

• President - Emmerson Mnangagwa

• Capital - Harare

• Official Name - Republic of Zimbabwe