Michael Makuza, Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) yesterday opened doors for members of the public to walk into any local bank and registered agencies to purchase smaller units of Mosi-oa-Tunya gold coins as an alternative store of value.
The apex bank announced the release of 4 500 smaller gold coins last Friday, which have since been distributed to licensed agencies across the country for the convenience of the public.
The gold coins initiative has been widely welcomed by different stakeholders after the first phase in July attracted overwhelming response from businesses and elite individuals, prompting authorities to introduce smaller units so as to cater for ordinary citizens with excess liquidity.
Adopted as part of monetary and fiscal interventions by authorities to stabilise the exchange rate and reduce inflation, the measures have already been applauded for mopping up excess liquidity in the market and stabilising the local dollar.
Since their inception, over 11 000 Mosi-oa-Tunya coins valued at $11,4 billion have so far been sold with analysts saying the coins have been effective in not only mopping up excess liquidity from the market but also offering an alternative investment instrument.
As a result, both the exchange rate and inflation have largely been stable due the measures introduced by the Government, among them being the gold coins.
In a latest update, the RBZ has said the introduction of smaller gold coins will go a long way in enhancing financial inclusion.
It added that the sale terms and conditions of the smaller units of the gold coins shall remain the same as those for the one-ounce gold coins but could not immediately disclose the prices. However, the coins shall be purchased at the prevailing international spot price of gold.
“The Reserve Bank of Zimbabwe is pleased to announce the release of the smaller units of the Mosi-oa-Tunya gold coins, the more inclusive and affordable store of value instrument,” it said.
“This all-inclusive alternative investment instrument is in line with the inclusivity mantra of leaving no one and no place behind.
“With similar features to the one-ounce gold coin, the new gold coins will be available for purchase at any local bank, Homelink and Aurex shops starting from the 15th of November 2022. What a golden opportunity for value preservation.”
Earlier, the apex bank had indicated that once payment for the coins has been received by the selling agent, the buyer of the gold coin takes physical possession of the gold coin or opts to keep the gold coin through bankers of their own choice (custodial services) on terms and conditions of the custodial service provider.
At the discretion of the holder of the gold coin, the RBZ has said, the bank or its agents would buy back the gold coins after a vesting period of 180 days in line with the need to promote a savings culture in the country.
For the buy-back, the bank or its agents (including Fidelity Gold Printers and Refiners and Aurex Jewellery) would request the bearer to surrender the original bearer certificate for the specific coin.
On redemption, both residents and non-residents (international buyers), will have a choice to request payment in US or Zimbabwe dollars.
According to the RBZ, features and characteristics of the smaller units are similar to one-ounce gold coins in circulation save for aspects such as one-tenth ounce with a diameter of 16mm, weight of 3,39g, edge type (fully needed with serial number on face of the coin) and a thickness of 1,2mm — a quarter of an ounce will be 21mm in diameter with a weight of 8,48g, edge type (reeded with serial number engraved) and a thickness of 1,65mm — and half an ounce will have a diameter of 25mm, weight of 16,97g, edge type (reeded with serial number engraved) and a thickness of 2,25mm.
The smaller units of the Mosi-oa-Tunya bullion coins were released into the market as earlier advised in the Mid-Term Monetary Policy Statement of August 11 this year.
Article Source: The Chronicle