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World Affairs, Economy
Mahesh

31/07/22 16:42 PM IST

Zimbabwe Launches Gold Coin (Mosi-Oa-Tunya)

In News 
  • Recently, Zimbabwe launched gold coins named “Mosi-oa-Tunya” in a bid to control the inflation in country. The Reserve Bank of Zimbabwe announced the launch and distributed 2,000 coins to commercial banks.
Features of the Coin 
  • The gold coin is called as “Mosi-oa-Tunya”. It means “The Smoke Which Thunders”. It also refers to Victoria Falls in native Tonga language.
  • Coins have been given the status of liquid asset. Thus, they can be easily converted into cash.
  • They are also easily tradable, locally and internationally tradable.
  • Coins can be used by Individuals or companies. They can purchase coins from banks and other authorised outlets.
  • Foreigners can also purchase the coins, however, only in foreign currency.
  • The coin holders can trade coins for cash, after 180 days from the date of purchase.
  • Price for the gold coins will be decided on the basis of international market rate for an ounce of gold. Additional 5% will be added for cost of production of the coin.
Reason for Introduction 
  •  In July, the annual inflation rate increased to 190%, and thus interest rate of central bank increased by two times to 200%.
  • Zimbabwe has been experiencing high inflation for a decade now. It has been trying to control it in many other ways.
  • In 2022, the value of Zimbabwe’s dollar decreased against major currencies.
  • As a result, black marketing of US dollars started by citizens in Zimbabwe.
  • Thus, Zimbabwe launched new gold coins to control the black marketing of dollar.
  • These gold coins can be used by international investors, to do insurance against inflation and conflict.

Source- The Hindu 

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