Home / World / Zimbabwe launches gold coins to tackle soaring inflation

Zimbabwe launches gold coins to tackle soaring inflation


Zimbabwe’s central bank has launched gold coins in an effort to help curb soaring inflation amid a slump in the country’s currency.


The central bank’s main interest rate was more than doubled this month to 200% after the annual rate of inflation rose above 190%.


Each coin will be priced at the international market rate for an ounce of gold plus 5% for production costs.


As of Friday, an ounce was worth about $1,724 (£1,435).

See also  Seven children killed in bomb explosion in the north


It will be possible use the coins in shops, if they have enough change, according to the governor of the Reserve Bank of Zimbabwe, John Mangudya.


The coin is called “Mosi-oa-Tunya” which means “The Smoke Which Thunders” and refers to Victoria Falls, on the border between Zimbabwe and Zambia.



Zimbabwe’s dollar slumped in value against major currencies this year.


The country still remembers the economic chaos under the late Robert Mugabe, who ruled for almost four decades.

See also  Fine those who reject proposals - Chadian Women's Rights League


Hyperinflation forced it to abandon the Zimbabwe dollar in 2009, and it opted instead to use foreign currencies, mainly the US dollar.


During the worst of the crisis the government stopped publishing official inflation figures but one estimate put the inflation rate at 89.7 sextillion percent year on year in mid-November 2008.


At the time, the one hundred billion Zimbabwe dollar bank note was seen as an emblem of the nation’s economic collapse.

See also  Hunger kills 13 children in southern Ethiopia


The local currency was reintroduced a decade later but it has rapidly lost value again.


Source: BBC

About admin

Check Also

Nollywood actress Regina Daniels’ husband wins Senator seat

  The husband of a popular Nollywood actress, Regina Daniels, Chinedu Nwoko, was on Monday, …

Leave a Reply

Your email address will not be published. Required fields are marked *