Inflation continues to rise in Zimbabwe. As a result, the value of the local currency has declined. The government is taking various measures to control the situation. As part of this, the country's central bank has taken the initiative to introduce gold coins as a medium of legal transactions by the end of July.
According to the Guardian, inflation in Zimbabwe more than doubled last month to 191 percent, a reminder of the 2000 inflation. At that time, the value of the country's currency was changed three times. However, the coin was finally abandoned in 2009.
Meanwhile, the people of Zimbabwe have reacted mixedly to the announcement of the introduction of gold coins. Ivan Mupachika, the country's foreign exchange trader, said: "The central bank will seize a coin with my cash, so I can't trust it."
Citizens have a crisis of confidence in Zimbabwe's central bank. This is because the financial authorities have failed the credibility test before.
In 2006, the country introduced 100 billion (Zimbabwe) notes. Many citizens have lost their savings as a result of the dramatic fall of the Zimbabwean dollar. Some people have to lose their pension. As a result, people started depositing money at home instead of keeping money in the bank. The country has moved away from the dollar, which has been plagued by inflation since 2009. Instead the US dollar becomes dependent.
In 2019, the local currency was introduced again. However, it also loses value quickly. Last week, the country's finance minister, Muthuli Nukube, said "gold coins will be able to hold more value."
