Holiday Ayo - Zimbabwe will introduce a gold coin that will allow investors to store value domestically while tackling inflation. It is known, Zimbabwe is currently experiencing uncontrollable inflationary pressures and the local currency of Zimbabwe continues to devalue rapidly against major currencies.

The gold coins, which will be equivalent to one troy ounce of 22 carat gold will be available starting July 25.

As cited from finance.detik.com, the Governor of the Central Bank of Zimbabwe, John P Mangudya said the coins will be available and sold in local currencies as well as United States (US) dollars.

"The gold coins will be available for sale to the public in both local currency and US dollars and other foreign currencies at prices based on prevailing international gold prices and production costs," Mangudya said.

Troy ounce is a unit of measure used for precious metals such as gold, silver, and platinum. The size of 1 troy ounce is equal to 31.10 grams.

Mangudya also said each gold coin will be identified by a serial number and can be easily converted into cash, locally and internationally.

The gold coin will be referred to as the 'Mosi-oa-Tunya' coin which means thundering smoke. It refers to Victoria Falls which is located on the border between Zimbabwe and Zambia.

As of last month, the annual inflation rate stood at 191.6%, while the Zimbabwean dollar has lost more than two-thirds of its value against the US dollar since the start of 2022.

Starting July 1, the main interest rate of the Central Bank of Zimbabwe was raised from 80% to 200% per annum to cope with rising cost of living. The announcement is part of the Zimbabwean government's steps to overcome the currency crisis.

Soaring inflation has piled pressure on President Emmerson Mnangagwa in a country that still remembers the economic turmoil under Robert Mugabe's nearly four decades of rule.