Zimbabwe's Short-Lived Gold Coin Sale Had Little Economic Impact
Gold coins were reintroduced to the market by the Reserve Bank in April to counter the rising global gold price. However, economists say the short-lived sale had minimal impact on the economy. The sale of coins from its accumulated stock abruptly ended in mid-June, and another chapter in the country's currency chaos was written, writes Gamuchirai Masiyiwa for the Global Press Journal.
Reserve Bank of Zimbabwe Governor John Mushayavanhu said that the gold coins were effective as an alternative investment instrument, and there was huge demand from both corporations and individuals.
The central bank first introduced the Mosi-oa-Tunya gold coins, which share an indigenous name for Victoria Falls, in 2022 at a time when the country was experiencing currency instability with high inflation and continued devaluation of what was then the national currency, the Zimbabwe dollar. However, the exchange rate of the Zimbabwe dollar drastically fell against the U.S. dollar and the government replaced it with the new Zimbabwe gold currency in April 2024. Since its introduction, the currency's value has been cut in half.
Experts argue that the initiative was another inconsistent policy that failed to address broader economic challenges, such as currency instability and public mistrust.
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A gold coin is displayed at the Reserve Bank of Zimbabwe. The central bank stopped minting gold coins in April 2024, before reissuing more coins from its stock a year later and then abruptly halting the sale in mid-June. Economists said the move had little effect on Zimbabwe’s broader currency crisis.
