Harare (New Ziana) –The Reserve Bank of Zimbabwe on Monday said gold coins will be available for purchase, from July 25, both in local and foreign currency at a price based on the prevailing international gold price and production costs.
The coins, to be sold through the RBZ and its subsidiaries, Fidelity Gold Refinery and Aurex, local banks and selected international banking partners, are being introduced as an alternative store of value and also as a way of propping up the local currency.
Releasing the specifications and features of the coin, to be known as the Mosi-Oa-Tunya, RBZ governor Dr John Mangudya said each would weigh one troy ounce and have a purity of 22 carats.
Each coin will also have a unique serial number.
“Upon purchase, the buyer shall take physical possession of the coin and be issued with a Bearer Ownership Certificate. The buyer or holder of the coin may opt to place it in the custody of bankers of own choice in which case a safe custody certificate/receipt will also be issued,” he said.
In terms of liquidity and tradability, the coin will have liquid asset status, that is, it will be capable of being easily converted to cash, and will be tradable locally and internationally.
The coin may also be used for transactional purposes and will also enjoy a Prescribed Asset Status, meaning that institutional investors can use it to meet regulatory requirements for prescribed asset investments.
“The coin can (also) be used as security for loans and credit facilities. At the instance of the holder, the Bank will buy back the coin. Entities selling the coins shall be required to apply Know Your Customer principles.”