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Zimbabwe launches gold coins as legal tender in efforts to control rising inflation

Published

2 years ago

July 25, 2022

The Reserve Bank of Zimbabwe (RBZ) on Monday, launched gold coins which will serve as the country’s legal tender in a bid to stem rising inflation in the east African country as well as boost confidence in its unstable local currency.

The coins called Mosi-oa-Tunya, which in the local Tonga language refers to Victoria Falls, the coins “will have liquid asset status, that is, it will be capable of being easily converted to cash, and will be tradable locally and internationally, according to the RBZ which is the country’s central bank.

The bank also announced that it has already disbursed 2,000 of the gold coins to commercial banks which will be sold to the public, according to the governor of the RBZ, John Mangudya.

Mangudya said the first batch of the coins was minted outside the country but eventually they will be produced locally, and can be used for purchases in shops, “depending on whether the shop has enough change.”

“Any individual or company can buy the coins from authorized outlets such as banks, according to an announcement by the country’s central bank.

“People can also buy the gold coins from authorized agents such as banks using the local currency or foreign currencies and purchasers can choose to keep the coins at a bank or take them home. Foreigners can only buy the coins in foreign currency,” the central bank governor said.

The price of the coins will be determined by the international market rate for an ounce of gold, plus 5% for the cost of producing the coin and at the time of the launch, the cost of the Mosi oa Tunya coin was put at $1,824 by the RBZ.

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Moroccan annual inflation rises to 0.8% in November

Published

19 hours ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”