RBZ to introduce Mosi- oa Tunya gold coins in small units

By Stanley James, Business Editor

THE Reserve Bank of Zimbabwe has announced plans to introduce the Mosi oa Tunya gold coins in smaller units by November this year, with more than 4 000 gold coins having been sold so far at a value of ZWL$3.7 billion.

In a Mid-Term Monetary Policy Review Statement released this Thursday, Reserve Bank of Zimbabwe Governor Dr John Mangudya revealed that smaller units of a tenth ounce, quarter ounce and half an ounce will be released for sale in November this year.

He revealed that the features of the gold coins, including characteristics, will be the same.

The gold coins were introduced on July 25 as an alternative store of value and for mopping up excess liquidity.

Official data in the policy statement shows a high demand for gold coins, with 90 percent of the transactions being paid in local currency and the balance in foreign currency.

Central bank authorities say the interest rate policy of 200 percent will be reviewed subject to monthly inflation developments.

Foreign exchange retention thresholds have been maintained at current levels.

However, foreign exchange transaction limits for traders processed through bureaux de change have been increased to US$ 5 000 from US$500 per week.

Furthermore, central bank authorities have increased the willing buyer- willing seller transactions limit from US$10 000 to US$20 000.

Takeaways from the Mid-Term Monetary Policy Review include reaffirmation of a tight monetary policy stance, projections of monthly inflation of between three to ten percent, exports expected to close the year at US$7 billion, and growth in electronic transfers and settlement systems.

A rise in total deposits at ZWL$1.12 trillion Zimbabwe dollars, over ZWL$100 billion bank profits, upward trajectory in foreign payments processed by banks, rise in foreign currency receipts to US$5 billion and approval of a US$70 million worth of letters of credit for the importation of essential commodities.

The post RBZ to introduce Mosi- oa Tunya gold coins in small units appeared first on ZBC NEWS.

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