The Sunday News
Judith Phiri, Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) has said the gold coin which shall be called the Mosi-Oa-Tunya Gold Coin will be available for sale to the public from 25 July in both local currency (ZW$) and United States Dollars (US$) (and other foreign currencies) at a price based on the prevailing international price of gold and the cost of production.
The gold coins which were recently announced will be used as a new investment tool to store value for local investors.
RBZ Governor Dr John Mangudya, who chairs the MPC said in a statement on Monday: “The gold coins will be available for sale to the public from 25 July 2022 in both local currency (ZW$) and United States Dollars (US$) (and other foreign currencies) at a price based on the prevailing international price of gold and the cost of production.”
“The coins will be sold through the Bank and its subsidiaries, Fidelity Gold Refinery (Private) Limited and Aurex (Private) Limited, local banks and selected international banking partners. Entities selling the coins shall be required to apply Know Your Customer (KYC) principles.”
He said the salient features and characteristics of the gold coin which shall be called the Mosi-Oa-Tunya Gold Coin include weight of one troy ounce, purity of 22 carats, while for identification each coin will have a serial number.
Dr Mangudya said in terms of ownership, upon purchase, the buyer shall take physical possession of the coin and be issued with a Bearer Ownership Certificate.
He said 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.
Dr Mangudya added: “For 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. In terms of prescribed asset status, the coin will have prescribed asset status and institutional investors can use it to meet regulatory requirements for prescribed asset investments.”
He said as collateral, the coin can be used as security for loans and credit facilities, while for buy back arrangement, at the instance of the holder, the Bank will buy back the coin.
