The Reserve Bank of Zimbabwe (RBZ) has published the latest prices for gold coins and digital tokens.
According to the world currency and inflation record, HankeInflationDashboard: Zimbabwe leads this week’s top 5 world inflators.
1.🇿🇼 Zimbabwe (1266%/yr)
2.🇸🇸 South Sudan (317%/yr)
3.🇸🇩 Sudan (229%/yr)
4.🇳🇬 Nigeria (125%/yr)
5.🇲🇲 Myanmar (71%/yr).
ZiG is said to be backed by gold reserves, however the increase in the yellow metal production has not resulted in the strengthening of the currency.
Gold deliveries to Fidelity Refiners rose to 10,309kg in the third quarter, 33 percent up from 7,739kg in second quarter, and 20% more than in the third quarter of last year.
In September 2024, large scale miners delivered 1,009kg vs 1,027kg in August and 961kg in Sept 2023.
Small scale miners sold 2,405kg in September, from 2,373 in August and 2,170kg in Sept last year.
Small scale miners account for 70% of the gold deliveries.
Zimbabwe produced 30 metric tons of gold in 2023, 15% less than the previous year, as electricity cuts and currency volatility impacted output.
The southern African country was once among the top gold producers on the continent but has fallen far behind regional peers Ghana, Mali, Burkina Faso, Guinea and Tanzania as an extended economic crisis kept investors away.
Zimbabwe remains largely under-explored and its operating mines struggle to raise capital due to concerns over government policy and property rights, especially after the seizure of white-owned farms at the turn of the century.
However, all this has not reflected on the local currency’s performance.
The gold coins and digital tokens were introduced as a store of value in an attempt to curb the local currency’s continued fall.
For long, the local currency has been performing badly against major convertible currencies especially the American dollar.
Meanwhile, RBZ recently assured Zimbabweans of currency stability, citing an increase in gold reserves backing the Zimbabwe Gold (ZiG) to over US$450 million.
RBZ Governor John Mushayavanhu clarified that recent exchange rate movements are market-driven, not a devaluation, & emphasized the bank’s commitment to economic stability.
Speaking in a televised interview with the national broadcaster Zimbabwe Broadcasting Corporation, Mushayavanhu said there no reason why the ZiG will continue to depreciate.
He based his sentiments on money supply which said is under control, while emphasising that gold reserves will continue to grow.
However, critics say Mushayavanhu’s sentiments are wide off the mark.
They he has no control over Treasury whose spending appetite is hard to satisfy.
Zwnews
