Zimbabwe Launches Gold Coins as Legal Tender To Tackle Hyperinflation

Zimbabwe has launched new gold coins to be sold to the public in a bid to tackle chronic hyperinflation. From a report: The gold coins - called Mosi-oa-Tunya - will have "liquid asset status", meaning they can be converted to cash, traded locally and internationally, and used for transactions, the Reserve Bank of Zimbabwe said. People can only trade the coins for cash after holding them for at least 180 days. Zimbabwean economist Prosper Chitambara said: "The government is trying to moderate the very high demand for the US dollar because this high demand is not being matched by supply." According to the International Monetary Fund, inflation in Zimbabwe reached 837% (year on year) in July 2020 and, although tighter fiscal policy helped reduce it to 60.7% by the end of last year, it remains in the high double-digits. This wipes away the value of people's savings - many people saw their savings wiped out by the 5 billion per cent inflation seen in 2008, according to the IMF.

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