By Stanley James, Business Editor
THE Reserve Bank of Zimbabwe has clarified the reason behind the introduction of gold coins as a store of value saying the move is meant to curb inflation and preserve wealth.
As part of efforts to facilitate a wide range of investment portfolios the central bank has seen it necessary to roll out gold coins.
This Friday Reserve Bank of Zimbabwe (RBZ) Governor, Dr John Mangudya outlined the roadmap to the introduction of the gold coins, including their intended purpose.
“The Reserve Bank of Zimbabwe’s Monetary Policy Committee (MPC) resolved to introduce gold coins into the market as an instrument that will enable investors to store value, the gold coins will be minted by Fidelity Gold Refineries (Private) Limited and will be sold to the public through normal banking channels, the primary aim and objective is to preserve the store of value for wealth so the process has started and minting has also started,” said Dr Mangudya.
The governor also clarified the rationale behind the introduction of gold coins in Zimbabwe.
“It is all about focusing on different trading platforms that have an effect in curbing inflation while focusing on the preservation of wealth in terms of its intrinsic value,” he said.
Monetary policy authorities highlighted the relevant trading structures of the gold coins.
“They are open to everyone that is industry, commerce, individuals, investors among many others others and they will be purchased using the set of units within the multicurrency basket,” he said.
Gold is rendered an important element for investors towards hedging against the effects of inflation and the gold coins are also expected to act as a key element in preserving the value of wealth.
For Market watchers it is the ability of gold to appreciate against macro-economic variables that has seen Zimbabwe forging ahead with the gold coins minting thrust.
Analysts have also backed the idea of the gold coins citing their positive effects on long term financial planning models.
Earlier this week, the Monetary Policy Committee noted that the minting of gold coins is important towards restoring confidence in the country’s financial markets.