RBZ revives gold coin sales to strengthen currency reserves

By Agencies

Zimbabwe’s central bank has resumed issuing gold coins, a program it halted nearly a year ago, in an effort to bolster the bullion reserves backing the newly introduced local currency, the ZiG, Bloomberg News reported on Sunday.

Production of the 22-carat “Mosi-Oa-Tunya” coins — named after the famous Victoria Falls — had been discontinued in July, according to central bank Governor John Mushayavanhu.

The gold coins are now being reintroduced through local banks, as the market’s appetite for bullion rises, said Persistence Gwanyanya, a member of the central bank’s monetary policy committee.

Gold’s appeal has strengthened recently, aiding the strategy to preserve value, Gwanyanya said to Bloomberg News in a phone interview on Sunday. He added that the central bank is capitalizing on strong gold prices by reissuing the coins.

Two banks — Central Africa Building Society (CABS), a unit of Old Mutual Zimbabwe, and the local arm of South Africa’s Nedbank Group — confirmed they are selling the newly minted coins.

Originally launched in 2022, the coins were intended as a hedge for pension funds and individuals seeking protection from Zimbabwe’s persistent inflation and currency instability.

In a client notice distributed over the weekend, CABS announced that the Reserve Bank of Zimbabwe had restarted the distribution of gold coins through authorized dealers.

Nedbank described the coins as a different type of investment that offers investors a chance to diversify their holdings with a valuable asset. The coins are available in sizes ranging from one-tenth of an ounce to a full ounce of gold.

A roughly 25% surge in global gold prices this year, driven by trade tensions involving the United States, is expected to benefit Zimbabwe’s gold sector, a major contributor to the nation’s economy.

According to data from the Reserve Bank of Zimbabwe, gold exports rose sharply in the first quarter, reaching $395.9 million, compared to $303.1 million during the same period last year, Bloomberg News reported.