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Zimbabwe has a new Gold Coin

Posted by Craig Reaser on July 06, 2022 - 7:51pm


Zimbabwe to introduce gold coins as local currency tumbles:  The "Mosi-oa-tunya" coin, named after Victoria falls, can be converted into cash and be traded locally and internationally, the Central Bank said.  The gold coin will contain 1 troy ounce of gold and will be sold by Fidelity Gold Refinery, Aurex and local banks, it added.  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 U.S. dollar legal tender for the next five years to boost confidence.  Zimbabwe abandoned its inflation-ravaged dollar in 2009, opting instead to use foreign currencies, mostly the U.S. dollar.  The government reintroduced the local currency in 2019, but it has rapidly lost value again.  Annual inflation hit 192% in June of this year.  Soaring inflation in the southern African country has been piling pressure on a population already struggling with shortages and stirring memories of economic chaos years ago under veteran leader Robert Mugabe's near four-decade rule.   -reporting by Nyasha Chingono-REUTERS