Back to the golden days:Zimbabwe to introduce gold coins as a store of value to tackle inflation, local currency tumbles

Zimbabwe says it'll introduce gold coins latterly this month as it tries to check soaring affectation amid a depression in its currency. The country's central bank also outlined plans to make the US bone

 legal tender for the coming five times. 

 

 The central bank's main interest rate was further than doubled this month to 200, after the periodic rate of affectation rose above 190. 

Zimbabwe's central bank said it would start dealing gold coins this month as a store of value to domestic raw affectation, which has vastly weakened the original currency. 

 

 The central bank governor John Mangudya said in a statement on Monday that the coins will be available for trade from July 25 in original currency. 

The" Mosi- oa- tunya" coin, named after Victoria falls, can be converted into cash and be traded locally and internationally, the central bank said. 

 

 The gold coin will contain one troy ounce of gold and will be vended by Fidelity Gold Refinery, Aurex and original banks, it added. Gold coins are used by investors internationally to hedge against affectation and wars. 

 Soaring Affectation in the southern African country has been piling pressure on a population formerly floundering with dearths and stirring recollections of profitable chaos times ago under expert leader Robert Mugabe’s near four- decade rule. 

 

 From 1 July the Reserve Bank of Zimbabwe's main interest rate was raised from 80 to 200 a time, in a shot to deal with the rising cost of living. 

Hyperinflation forced the country to abandon the Zimbabwe bone

 in 2009, and it decided rather to use foreign currencies, substantially the US bone

 . 

 

 During the worst of the extremity the government stopped publishing sanctioned affectation numbers but one estimate put the affectation rate at89.7 sextillion percent time- on- time inmid-November 2008. 

At the time, the 100 billion Zimbabwe bone

 bank note was seen as an hallmark of the nation's profitable collapse. 

 

 Under President Emmerson Mnangagwa, who took over from Robert Mugabe in a military putsch in 2017, Zimbabwe has witnessed an profitable breakdown, compounding a hunger extremity that has followed poor rains.