Zimbabwe Resumes Gold Coin Minting Amid Soaring Bullion Prices
Zimbabwe’s central bank has resumed issuing gold coins, a move it had suspended 10 months ago.
This decision aims to boost the bullion reserves backing the local currency, the ZiG, which is teetering on the brink amid policy missteps, according to Imara Asset Management, the country’s oldest independent brokerage.
The 22-carat coins halted in July, are once again available through the country’s banks, at a time when the appeal of bullion is high, according to Persistence Gwanyanya, a member of the central bank’s monetary policy committee.
“Gold is more attractive to the market at the moment and it supports our value preservation efforts,” Gwanyanya said Sunday in a phone interview. “We are taking advantage of firm gold prices and re-injecting the gold coins into the market.”
Two banks have confirmed the sale of newly minted gold coins: the Central Africa Building Society (CABS), a subsidiary of Old Mutual Zimbabwe, and a local branch of South African lender Nedbank Group Ltd, Bloomberg reported.
These coins, first issued in 2022, were introduced as a store of value for pension funds and individuals looking for a haven from recurring inflation and currency volatility.
Nedbank described the coins as an “alternative investment option” that can be used to enhance investment portfolios with a “valuable asset.” The coins are available in denominations ranging from one-tenth of an ounce to one ounce of gold.
A surge in global gold prices, which have increased by around 25% this year due to trade war uncertainties sparked by the U.S., is expected to benefit Zimbabwe, a key producer of the precious metal.
According to data from the Reserve Bank of Zimbabwe, the value of the country’s gold shipments surged to $395.9 million in the first quarter, up from $303.1 million during the same period last year.
