RBZ MPC Member Says Mosi-oa-Tunya Gold Coins Results Have Been Exceptional

Reserve Bank of Zimbabwe (RBZ) Monetary Policy Committee Member Mr Persistence Gwanyanya, has said the Mosi-oa0Tunya gold coins that were introduced on the 25th of July this year have been exceptional in curbing inflation.

He told ZBC News that more than 5 000 gold coins have been sold as of Wednesday 24 August 2022, mopping up ZWL4 billion of money in the market. Gwanyanya was quoted as saying:

The results of the gold coins have been exceptional in that they have managed to stop the skyrocketing parallel market which is devoid of any fundamentals hence the obtaining situation is encouraging and commendable for the benefit of the whole country.

We are also seeing a trend whereby companies are now opting to pay salaries and services using the US dollar and this is a good situation for the country whereby foreign currency is readily available for those who need it.

The Mosi-oa-Tunya Gold Coins were introduced with multi-dimensional objectives, including clearing excess liquidity which was considered as a factor behind the freefall of the local currency.

It was argued back then that the gold coins will trigger a shortage of the Zimbabwean dollar forcing companies and individuals who are sitting on large sums of U.S. dollars to release them into the market for circulation.

Notably, the parallel market rate has in recent weeks been a little bit stable compared to months ago when the Zimbabwe dollar was shedding value against the U.S. dollar at an unparalleled rate.

A snap survey by Pindula News suggested that some forex dealers were recently giving ZWL$700 cash for a U.S. dollar or ZWL$650 if it’s electronic.

Meanwhile, the official exchange rate is currently at ZWL521 per every one US$.

Meanwhile, private-owned commuter omnibuses have been raising fares lately. From ZWL$220 TO ZWL$350 to ZWL$400 and eventually to ZWL$500 within one week. 

Pindula News