Mosi-oa-Tunya’: Zimbabwe’s Gold Coin to Curb Inflation

July 30, 2022

Recently, Zimbabwe launched gold coins named “Mosi-oa-Tunya” in a bid to control the inflation in country. The Reserve Bank of Zimbabwe announced the launch and distributed 2,000 coins to commercial banks. In July, the annual inflation rate increased to 190%, and thus interest rate of central bank increased by two times to 200%.

Zimbabwe has been experiencing high inflation for a decade now. It has been trying to control it in many other ways.
In 2022, the value of Zimbabwe’s dollar decreased against major currencies.
As a result, black marketing of US dollars started by citizens in Zimbabwe.
Thus, Zimbabwe launched new gold coins to control the black marketing of dollar.
These gold coins can be used by international investors, to do insurance against inflation and conflict.

Features of the Gold Coin include;

The gold coin is called as “Mosi-oa-Tunya”. It means “The Smoke Which Thunders”. It also refers to Victoria Falls in native Tonga language.
Coins have been given the status of liquid asset. Thus, they can be easily converted into cash.
They are also easily tradable, locally and internationally tradable.
Coins can be used by Individuals or companies. They can purchase coins from banks and other authorised outlets.
Foreigners can also purchase the coins, however, only in foreign currency.
The coin holders can trade coins for cash, after 180 days from the date of purchase.

Price for the gold coins will be decided on the basis of international market rate for an ounce of gold. Additional 5% will be added for cost of production of the coin.

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