Zimbabwe To Introduce Gold Coins, Interest Rate Increased To 200% From 80%
The Reserve Bank of Zimbabwe (RBZ) announced on Monday that it is set to introduce gold coins.
In a statement on Monday, Governor John Mangudya said the gold coins will be introduced as part of measures to ensure investors and the general public have alternative means to preserve value.
The gold coins will be minted by Fidelity Gold Refineries. They will be sold to the public through normal banking
The Monetary Policy Committee (MPC) resolved to have the gold coins introduced.
Part of the statement released by Governor Mangudya read:
The 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.
At the time of writing, iHarare could not establish when the gold coins will be introduced into the Zimbabwean market.
While the design of the gold coins has not yet been released by the Reserve Bank of Zimbabwe, they are expected to be made of 90–92 per cent gold (22 karat) in line with international standards.
In related news, Zimbabwe’s central bank also increased the interest rate. It was increased from the current 80 per cent to 200 per cent per annum.
The central bank policy rate (CBPR) is the rate that is used by the central bank to implement or signal its monetary policy stance and provides an indicator of the minimum level of lending rates for banks.
The Medium Term Accommodation interest rate increased from 50 per cent to 100 per cent per annum.
The RBZ also increased the minimum deposit rate for local currency savings to 40 per cent per annum from 12, 5 per cent.
The time deposits minimum rate for Zimbabwe dollars was increased to 80 per cent per annum from the current 25 per cent.
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