Zimbabwe Resumes Gold Coin Sales to Support Currency Stability
Zimbabwe’s central bank has resumed the issuance of gold coins, a move it had suspended 10 months ago.
The decision aims to bolster the bullion reserves backing the local currency, the ZiG, which has been under pressure due to policy missteps, according to Imara Asset Management, the country’s oldest independent brokerage.
The 22-carat gold coins, whose issuance was halted in July, are once again available through the country’s banks.
The timing aligns with heightened market demand for gold, noted 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 in a phone interview on Sunday. “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: Central Africa Building Society (CABS), a subsidiary of Old Mutual Zimbabwe, and a local branch of South Africa’s Nedbank Group Ltd, Bloomberg reported.
First introduced in 2022, the coins were designed to offer pension funds and individual investors a safe haven against persistent inflation and currency instability.
Nedbank described the coins as an “alternative investment option” to strengthen portfolios with a “valuable asset.” The coins are available in various denominations, ranging from one-tenth of an ounce to one ounce of gold.
A surge in global gold prices—up about 25% this year amid trade tensions driven by the United States—is expected to further benefit Zimbabwe, a major gold producer.
According to the Reserve Bank of Zimbabwe, the value of the country’s gold exports rose to $395.9 million in the first quarter of 2024, up from $303.1 million during the same period last year.
