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Tuesday, June 6, 2023

Public acceptance of gold coins a signal of improved financial confidence

By Davison Vandira

THE recently introduced Reserve Bank of Zimbabwe small gold coins for individuals have started on an impressive path with nearly 500 out of the 4 000 introduced having been purchased so far in their first week.

The combination of bigger and small denominations of the Mosi-a-Tunya gold coins have become the financial instrument of value preservation for both individuals and companies which has had some positive economic spinoffs through reducing excessive money supply since their introduction.

Reserve Bank of Zimbabwe governor Dr John Mangudya says they are looking to stay on course for enhanced economic stability.

“The high demand of the gold coins is a positive move to the country’s fight against high inflation and going forward we are maintaining the status quo, there will be no excess liquidity that caused exchange rate instability like in the past,” he said.

Fiscal and monetary authorities have been instituting various measures to tame inflationary pressures in the economy and the introduction of gold coins on the 25th of July has seen close to 11 000 gold coins being sold so far resulting in the mopping up of almost ZWL10 billion from the parallel market.

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