Zimbabwe, an African nation, will begin selling its “Mosi-oa-tunya” gold coins on July 25 after the country’s paper currency lost value due to unchecked inflation.
Inflation in Zimbabwe reached 192 percent in June, underscoring President Emmerson Mnangagwa’s attempts to pull the economy out of three-digit inflation that was having a negative impact on the economy.
In an effort to combat inflation and safeguard the nation’s currency, the government had previously raised interest rates from 80 percent to 200 percent, but given the country’s recent decision, it appears that this measure had little to no effect on inflation.
On Tuesday, there were rumours that Zimbabwe, three years after reinstating its Zimbabwean dollar, which had been suspended in 2009 and replaced with the US dollar to sustain their economy, was bringing its gold coins back to fight inflation.
Governor of the Zimbabwe Central Bank John Mangudya announced this. Local banks, Aurex, and Fidelity Gold Refinery will sell the gold coins. It is convertible into cash and contains one troy ounce of gold (around 31 grams).
Zimbabwe’s monetary system has changed as a result of a Ripples Nigeria article from June, which claimed that people in Zimbabwe are exchanging their toes for dollars.
Depending on the toe sold, earnings can range between $20,000 and $40,000. An person who had purportedly sold his toe was seen on video saying he used the proceeds to purchase a Toyota car.
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