Beginning July 25, Zimbabwe’s public will be allowed to purchase and keep one troy-ounce gold coins. In addition to their use as an alternative store of value, the central bank says the coins can be traded and used as “security for loans and credit facilities.”
Coins to Be Sold at ‘Prevailing International Price of Gold’
Just a few weeks after revealing its plans to roll out gold coins, the Reserve Bank of Zimbabwe (RBZ) released a statement on July 4 advising “the public of the salient features and characteristics of the gold coin.” According to the statement, the public will be able to purchase the gold coins “at a price based on the prevailing international price of gold and the cost of production.”
According to the RBZ, sales of the coins will begin on July 25, and customers can purchase them using USD or local currency. Mosi-Oa–Tunya, the local name for Victoria Falls in gold, is the coin’s weight. It weighs one troy-ounce and approximately 31.10g. According to the statement, each coin has an purity of 22 carats.
The RBZ has previously said the gold coins will be used as an alternative store of value by Zimbabwean investors that are seeking to shield their savings against the country’s runaway inflation. Before the central bank’s latest decision, individuals and unlicensed entities were barred from buying or storing gold.
According to the country’s laws, only authorized individuals or entities are permitted to possess or sell the precious metal to the country’s sole buyer of gold, Fidelity Printers and Refiners. Individuals who violate the law could be sent to prison.
To Issue Ownership Certificates for Coin Holders
However, in the statement that also informs residents of the places where they can purchase the gold coins, the RBZ assures investors buying the gold coins that they will be allowed to “take physical possession of the coin.” The statement added that gold coin holders will be issued a “Bearer Ownership Certificate.” Holders that opt to use the custody services of a third party will be issued a relevant certificate or receipt.
The RBZ is available for entities or financial institutions that want to trade in or use coins.
The coin will become a liquid asset, meaning it will be possible to convert the currency into cash. It can also be traded both locally and internationally. You can use the coin for transactions.
In addition to having a prescribed asset status, the gold coins will be “used as security for loans and credit facilities.” There is also a buy-back arrangement should the holder decide to liquidate the coin, the RBZ said.
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