Zimbabwe’s Central Bank Revives Gold Coin Initiative to Bolster Local Currency

By Shingirai Vambe

Zimbabwe’s central bank is again issuing gold coins it scrapped 10 months ago, a step it took to ramp up the bullion stockpile used to back up the local currency, the ZiG.

Minting of the so-called “Mosi-Oa-Tunya” 22-carat coins, named after the iconic Victoria Falls, was scrapped in July, central bank Governor John Mushayavanhu said during the interview.

The coins are now available again through the nation’s lenders at a “time of attractiveness” of bullion, according to Persistence Gwanyanya, a central bank monetary policy committee member.

“Gold is more attractive to the market at the moment and it supports our value preservation efforts,” Gwanyanya said in a phone interview. “We are taking advantage of firm gold prices and re-injecting the gold coins into the market.”

Zimbabwe’s gold coins sold above $3,000 for the first time since they were introduced almost three years ago as the price of bullion surged.

The 22-carat “Mosi-Oa-Tunya” gold coins, named after Victoria Falls, a popular tourist destination in southern Africa, were priced at $3,018.38, according to data on the Reserve Bank of Zimbabwe’s website Monday. Spot gold rose to $2,911.72 an ounce after US President Donald Trump said he plans to impose 25% tariffs on steel and aluminum imports.

Two banks confirmed the sale of newly-minted coins — the Central Africa Building Society (CABS), a subsidiary of Old Mutual Zimbabwe, and a local unit of the South African lender Nedbank group Ltd. The coins were first in 2022 as a store of value for pension funds and individuals seeking a safe haven from frequent bouts of inflation and currency volatility.

“We are pleased to inform you that the Reserve Bank of Zimbabwe (RBZ) has reintroduced the issuance of gold coins through authorized dealers,” CABS said in a client notice issued over the weekend.

The coins are an “alternative investment option” which can be used to enhance investment portfolios with a “valuable asset,” Nedbank said in its client notice. The coins are sold in denominations ranging from one-tenth of an ounce to one ounce of gold.

A surge in global gold prices by alomost 25% so far this year, fueled by the uncertainty of a trade war launched by the US, is widely expected to be a boon for Zimbabwe, a primary producer of the precious metal.

The value of Zimbabwe’s gold shipments jumped to 395.9 million during the first quarter from $303.1 million a year earlier, according to data from Reserve Bank of Zimbabwe.