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IMF says gold coins missed chance to build Zimbabwe reserves

The gold coins that have been in circulation in Zimbabwe for almost three months are a missed chance to build the nation’s gold reserves, according to the International Monetary Fund.

“The sale of gold coins has contributed to withdrawing Zimbabwe dollar liquidity from the market, though it represents an opportunity cost in terms of foregone reserves for the Reserve Bank of Zimbabwe,” an IMF spokesperson said on Thursday.

John Mangudya, the central bank governor, didn’t immediately respond to calls to his mobile phone seeking comment.

The central bank plans to sell smaller denominations of the so-called “Mosi-oa-Tunya” gold coins, named after Victoria Falls, from November. The smallest, a tenth of an ounce, will be made available to the public through banks and approved dealers. A regular-size one is selling for $1,755, according to data available Thursday on the central bank’s website.

The coins are widely credited with helping halt the decline in the parallel market rate for the Zimbabwe dollar. That’s allowed it to converge with the official rate, which has plunged more than 80% against the US currency this year.

Gold output in the southern African nation surged 41% in the first eight months of the year to 22,290 kilograms from a year earlier. The country aims to produce 35 tons of bullion in 2022. – (Bloomberg)

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One Comment

  1. When you have a RBZ Governor that is a thief just as the former Gono. Their objective is to continue to follow their master’s Mnangagwa instructions to steal as much gold as possible for their own pockets. Zimbabwe is a sesspole of thieves from the President down to his cronies appointees. Gold is what Zimbabwe has much of. And could have brought them out of international debt years ago. But with the deals cut by the President and Governor with corrupt Arabs, Indians, in Dubai and Rand Refinery SA. They will continue the looting of gold resources until the reserve are finished or no longer cost effective to mine and contamination of the land. Zimbabwe is run by Colonial trained African dogs that still serve their UK masters for personal profit to the crown. Nothing will change until the people have had enough suffering. And that will continue for some time. Africa is at a cross road for this generation. Either change for this generation or make no gains.

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