By 
Reserve Bank of Zimbabwe (RBZ) Governor Dr John Panonetsa Mangudya will release 4 500 small gold coins on Tuesday, as the Government enhances measures to stabilise the local currency and curb inflation.
Governor Mangudya exclusively revealed to TechnoMag that the introduction of the first gold coins significantly contributed to taming inflation, prompting the authorities to introduce small denominations that will further stabilise the economy.
“We shall be releasing an initial quantity of 4 500 gold coins of lower denomination from November 15, 2022 in line with our previous advice to the market,” Dr Mangudya said.
“The RBZ will be introducing one-tenth of an ounce, one-quarter and half of an ounce onto the market. So far, 11 475 gold coins have been sold for $11,4 billion,” he said.
Dr Mangudya added, that the gold coins have been successful in mopping up excess liquidity in the economy.
“We will fulfil what we said earlier about the gold coins of smaller denominations to ensure that everyone has a chance to invest and store value in the gold coins.
“The response to gold coins has been positive, so, by introducing smaller denominations, demand is likely to increase and this will assist in mopping up liquidity from the market and enhance value of the local currency.”
Zimbabwe’s month-on-month inflation fell for the fourth consecutive month in October.
Mangudya expects it to further decline to 3 percent by year-end, while the annual rate is anticipated to drop below 100 percent on the back of monetary and fiscal interventions Government is implementing.
The Mosi-oa Tunya’s smallest gold coin will be one-tenth of an ounce and will be sold in both local currency and United States dollars at a price based on the prevailing international price of gold, plus 5 percent to cover the cost of production and distribution.
Governor Mangudya introduced the one-ounce gold coins in July this year.
More than 11 000 coins worth $11,4 billion have been sold to date, with corporates accounting for the biggest share.
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