Starting on July 25, the Zimbabwean public will be able to buy and hold gold coins which weigh one troy ounce each. In addition to their use as an alternative store of value, the central bank says the coins can be traded and used as “security for loans and credit facilities.”
The sale of the coins is expected to commence on July 25 and buyers will be able to purchase the coins using local currency or USD, the RBZ said. The gold coins, which have been named Mosi-Oa-Tunya (the local language equivalent for the Victoria Falls), weigh one troy ounce or approximately 31.10 grams. Each coin has a purity of 22 carats and is assigned a serial number for identification purposes, the statement said.
However, in the statement that also informs residents of the places where they can purchase the gold coins, the RBZ assures investors buying the gold coins that they will be allowed to “take physical possession of the coin.” The statement added that gold coin holders will be issued a “Bearer Ownership Certificate.” Holders that opt to use the custody services of a third party will be issued a relevant certificate or receipt.
For financial institutions or entities that wish to trade or use the coins, the RBZ said:
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 addition to having a prescribed asset status, the gold coins will be “used as security for loans and credit facilities.” There is also a buy-back arrangement should the holder decide to liquidate the coin, the RBZ said.
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