Corporates snap up 75 percent of gold coins

by | Aug 30, 2022 | Business, Local News | 0 comments

Corporates snap up 75 percent of gold coins

Nevanji Munyaradzi Chiondegwa

Ninety five percent of gold coins produced in Zimbabwe have been sold in local currency, the Reserve Bank of Zimbabwe has said.
In a statement issued after the Monetary Policy Committee’s August meeting, RBZ Governor Dr John Mangudya said there has been strong uptake of gold coins.
According to him 6459 gold coins out of 6799 produced, were bought in local currency with the remaining being in United States dollars.
Seventy five percent of all gold coins were bought by corporates.

Dr Mangudya said, “The MPC noted with satisfaction that a combination of the tight monetary policy stance, favourable uptake of gold coins, effective monitoring and enforcement of market discipline by the Financial Intelligence Unit (FIU) and the review and enhancement by Government of its procurement processes and practices to ensure value for money had resulted in the stability of the exchange rate and a decline in inflationary pressures.”

He also revealed that as at 26 August 2022, a cumulative total of 10 000 gold coins had been minted and out of which 8 076 gold coins had been distributed to the Bank’s agents for sale.

Dr Mangudya also said, “The MPC also noted the decline in month-on-month inflation from 25.6% in July 2022 to 12.4% in August 2022 and as previously advised, it was expected that the month-on-month inflation would progressively decline, while annual inflation was expected to continue rising to reach an annual peak in September 2022 due to the lower base effect in 2021.”

On the back of the tight monetary policy stance pursued by the Bank, the official and paralel market foreign exchange rates were expected to converge in the outlook period, thereby fostering price stability and anchoring inflation and exchange rate expectations.

To ensure sustained exchange rate and inflation stability in the economy, the MPC resolved to maintain the tight monetary policy stance, while ensuring adequate support to the productive sectors of the economy, in particular primary agriculture, agro-processing and small and medium enterprises (SMEs) as follows, maintaining the Bank policy rate at 200% per annum; and
maintaining the Medium Term Accommodation interest rate at 100% per annum.