Global macroeconomic situations brought inflationary circumstances for many countries, but several had the worst hit.
Since the start of this year, the global economic situation has taken a lot of hits as stock markets all over, world trade, and several other factors on which the economy depends, got affected due to many international instances. Federal rates, interest rate hikes, breaking out of the Russia-Ukraine war, stock markets trembling and crypto market crashes are among several reasons responsible for bad macroeconomic situations.
Almost every other country is facing the consequences of the same, in one way or the other yet some of these companies are just going through the worst. One such country includes Zimbabwe, where inflation has soared to such a huge extent that now the government is going to introduce gold coins soon as its currency is losing its value and credibility. The Central Bank of Zimbabwe also has plans to legalize the US dollar in the country for the upcoming five years.
These moves came in the wake of efforts to curb the rising annual inflation rate that had risen more than 190%, where the Central Bank has doubled its interest rate, which went up to 200% this month. Zimbabwe’s native currency has seen a heavy drop this year, against major currencies all around.
While providing further details about their plan, Reserve Bank of Zimbabwe governor John P Mangudya stated that the gold coins would contain about one troy ounce or 31.10 gm of 22 carat gold and said that it would also be available by the end of this month. He further added that these gold coins will be publicly available for sale that could be bought by both Zimbabwe’s native currency, in US dollars, and also in several other foreign currencies.
Each gold coin will have a serial number for its identification and can be converted into cash locally or internationally. This gold coin from Zimbabwe is said to be called the Mosi-oa-Tunya Gold Coin. Its name took reference from the Victoria Falls, for which it is often said that it’s like the smoke which thunders. The announcement of this new gold coin is taken as part of efforts that the government of Zimbabwe is taking in order to tackle the ongoing economic and currency crisis in the country.
Source: https://www.thecoinrepublic.com/2022/07/06/will-minting-gold-coins-help-zimbabwe-to-beat-soaring-inflation/