Lower income earners have applauded the Government for introducing smaller gold coins, with high expectations that ordinary citizens with reasonable balances in their banks can now invest in the coins.
The smaller coins went on sale on Tuesday last week with the half ounce costing US$928,34 or ZW$600 787,31, the quarter ounce for US$464,34 or ZW$308 393,66 and the smallest, the one tenth ounce, selling for US$185,73 or ZW$123 357.
This is the global price of gold plus 5 percent to cover the minting and distribution costs.
Yesterday, ordinary people who spoke to The Herald in Harare were optimistic that the intentions of Government to curb inflation further would be achieved through the sale of gold coins.
“This a welcome development, I am very glad that low income earners like myself have been accommodated and we are now benefitting directly,” Mr Tawanda Chihuri of Mount Pleasant said. “My pay comes in Zimbabwe dollars so I have been relying on black market to get foreign currency, but now I will just invest in gold coins to preserve the value of my money.”
Another citizen, Mrs Evidence Mazanza of Glen Norah A, was equally excited about the new offer. However, she blasted banks that were demanding bank account details as prerequisite to get information.
“When I heard about the introduction of smaller gold coins, I rushed to the bank to make some inquiries, but they were only giving information to persons with bank accounts that had enough funds to purchase the smaller gold coins,” she said.
Mr Rejoice Mushawatu said the Reserve Bank of Zimbabwe would have to increase minting beyond the 4 500 already now on sale.
“This is an exciting moment for us,” he said. “Obviously the introduction of smaller units will create further demand for gold coins so the RBZ has to consider adding other more units to the 4 500 units released.
“Even a vendor can afford to buy the smallest unit, so to reduce the pressure there is a need to inject more gold coins.”
Ms Talent Kamuriwo of Budiriro urged banks to put information on how gold coins could be obtained on notice boards and their social media platforms.
“Of course everyone wanted to purchase gold coins but most the people did not get necessary information,” he said. “Banks must support this Government initiative by availing information to their clients. People should not be left guessing.”
Investment analyst Mr Batanai Matsika said gold coins play an important role in terms of financial intermediation.
“The gold coins have been very important in the sense that it has mopped up liquidity in different sectors of the economy but what is also key is that they play a very important part in terms of financial intermediation.
“This is an alternative investment that has been added as an appeal not only to institutional investment but also even to individuals.”
Mr Kipson Gundani, an industrialist, also echoed the same sentiments saying gold coins were key in terms of value preservation as well as stabilising the economy by mopping up excess liquidity in the markets.
“It can be very critical in giving people an alternative to store value,” he said.
In the second quarter of this year, the Zimbabwean economy was reeling with inflation, but a raft of measures introduced by Government have arrested the trend.
The Government continues to adopt monetary policy measures targeting speculative exchange rate manipulators who are stoking unfairly black market volatility that devalue the local currency.
And the gold coins have been viewed as a masterstroke by many in dealing with foreign exchange instability and this new development is expected to give a final blow to illegal money changers by drying up the flow of local currency that was feeding the output end of the black market, after the one ounce coins took around $12 billion in local currency out of circulation. – The Herald
