Smaller gold coins start selling today
BANKS will from today start selling 4 500 smaller units of the Mosi-oa-Tunya gold
coins, with the banking sector yesterday expressing their readiness to sell the bullion
coins to interested customers.
Last week, the Reserve Bank of Zimbabwe (RBZ) announced that banks would start
selling the smaller denominations of the gold coins today having disbursed them to
banks last Friday and yesterday.
The central bank introduced smaller units of the gold coins to allow ordinary citizens
with excess liquidity to also invest in the alternative store of value to the US dollar, the
same way cash-rich big investors got such an opportunity when the monetary authorities
released the bigger denominations of the gold coins in July this year.
Bankers Association of Zimbabwe (BAZ) president Mr Fanwell Mutogo yesterday told this
publication that the smaller units of the Mosi-oa-Tunya will be going into the market
today as earlier announced by RBZ.
“What I can tell you is that as previously announced by the Reserve Bank of Zimbabwe,
the new small gold coins are coming to the market tomorrow.
“The question that I am not able to answer, which I also refer you to the Reserve Bank of
Zimbabwe is whether all banks will be selling the gold coins.
“But as BAZ, we are ready to sell the new smaller units of the gold coins to ordinary
citizens,” he said.
The larger units of the bullion coins, one ounce gold coins, have been in circulation since
July 25 this year and are being sold to both individuals and corporates in local currency
and forex at a price determined by the prevailing international price of gold plus five
percent to cover the cost of production and distribution.
Once payment has been received by the selling agent, the buyer of the gold coin has the
option to either physically possess it or keep it through bankers of their own choice on
the terms and conditions of the custodial service provider.
At the discretion of the holder of the bullion coin, the monetary authority has said, RBZ
or its agents would buy back the gold coins with the need to promote a savings culture in
Zimbabwe.
In the case of a buy-back, the central bank or its agents (including Fidelity Printers and
Refiners and Aurex Jewellery), would request the bearer to surrender the original bearer
certificate for the specific coin.
On redemption, residents and non-residents (international buyers) will have the option
to request payment in US dollars or Zimbabwe dollars.
In a written response on the sale of smaller denomination gold coins, RBZ Governor Dr
John Mangudya yesterday said: “The current terms and conditions of selling the one
ounce of coins will remain the same for the lower denominations.”
The smaller units of the Mosi-oa-Tunya bullion coins are being released into the market
as earlier advised in the mid-term monetary policy statement of August 11 this year.
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.
Meanwhile, over 11 000 Mosi-oa-Tunya valued at $11,4 billion have so far been sold with
market analysts saying the gold coins have been effective in mopping up excess liquidity
from the market while spontaneously offering an alternative investment instrument.
They form part of a cocktail of monetary and fiscal interventions by authorities to
stabilise the Zimbabwe dollar exchange rate and rein once resurgent inflation.
Since August this year, both the exchange rate and inflation have largely been stable.-The Herald
