Zimbabwe: No Gold Coins in Circulation Yet, Says Reserve Bank

The Reserve Bank of Zimbabwe on Thursday dismissed as “fake news”, social media content alleging that gold coins were already available ahead of their official release date.

The central bank announced on Monday this week that the coins would be available for purchase starting July 25 this year.

In one incident, a video of former Zanu PF MP and businessman Killer Zivhu who was holding gold coins of unknown origin or authenticity, was widely circulated on social media.

But, the RBZ said the coins were yet to be released.

“Videos and messages circulating on social media purporting or giving out that gold coins are available for sale and that some people already have them are nothing but fake news,” the Central bank tweeted.

“For the record, RBZ has not released any gold coins and the gold coins will become available on 25 July 2022 as earlier advised by RBZ.”

The coins, being introduced as an alternative store of value and also as a way of propping the local currency, will be sold to the public in both local and foreign currency at a price based on the prevailing international gold price and production costs.

They will be sold through the RBZ and its subsidiaries, Fidelity Gold Refinery and Aurex, local banks and selected international banking partners.

Dubbed the Mosi-Oa-Tunya, each coin will have a unique serial number, weigh one troy ounce and have a purity of 22 carats.

“Upon purchase, the buyer shall take physical possession of the coin and be issued with a Bearer Ownership Certificate. The buyer or holder of the coin may opt to place it in the custody of bankers of own choice in which case a safe custody certificate/receipt will also be issued,” RBZ governor Dr John Mangudya said on Monday.

In terms of liquidity and tradability, the coin will have liquid asset status, that is, it will be capable of being easily converted to cash, and will be tradable locally and internationally.

The coin may also be used for transactional purposes and will also enjoy a Prescribed Asset Status, meaning that institutional investors can use it to meet regulatory requirements for prescribed asset investments.

“The coin can (also) be used as security for loans and credit facilities. At the instance of the holder, the Bank will buy back the coin. Entities selling the coins shall be required to apply Know Your Customer principles.” – New Ziana