dollars used to pay for the coins, this could squeeze the central bank and its intermediaries' foreign currency reserves. dollars used to purchase the gold from miners and the U.S. 'However, should there be a disparity between the amount of U.S.

dollar payments offered to artisanal miners,' noted securities firm Morgan & Co in a market intelligence report. 'Gold deliveries in Zimbabwe have significantly recovered because of the appetizing U.S. The fact that Zimbabwe's central bank would have to buy the gold from miners of the metal such as informal artisanal miners could also present challenges and result in increased smuggling, analysts say. Selling the coins in fast depreciating local currency could also result in 'rent-seeking behaviour, speculation and arbitrage within the economy,' as some could buy using local currency and then sell in dollars later, he said. Video Inflation explained: what’s really driving up pricesĬompanies with excess cash can find the coins useful to store value and also as an alternative investment asset, although individuals and companies are likely to continue preferring the dollar because 'it is convenient and highly liquid,' he said. People holding the coins can only trade them for cash after 180 days from the date of buying, the bank said. The coin may also be used for transactional purposes,' said the central bank. Foreigners can only buy the coins in foreign currency, said the central bank.Ĭalled Mosi-oa-Tunya, which in the local Tonga language refers to Victoria Falls, the coins 'will have liquid asset status, that is, it will be capable of being easily converted to cash, and will be tradable locally and internationally. Trade for cashĪny individual or company can buy the coins from authorized outlets such as banks and can keep the coins at a bank or take them home, according to an announcement by the country's central bank. 'The expectation is that … there will also be moderation in terms of the depreciation of the local currency, which should have some kind of stabilizing effect in terms of pricing of goods,' he said. dollar because this high demand is not being matched by supply,' said Zimbabwean economist Prosper Chitambara. 'The government is trying to moderate the very high demand for the U.S. The coins can be used for purchases in shops, depending on whether the shop has enough change, he said.

Zimbabwe tries to bring back its dollar, a decade after hyperinflation killed it.

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