The CEO Round Table executive director Kipson Gundani has said that plans by the Reserve Bank of Zimbawe to sell gold coins to the public as a store of value to stabilize the nation’s tumbling currency and offer an alternative to the US dollar is a scheme set to benefit the ruling elite.
Gundani said that the move by the RBZ would enrich a few connected elite at the expense of the public.
‘’ This creates an opportunity for arbitrage where the connected elite will buy the gold coins in Zimbabwe Dollar terms and liquidate them in US Dollar terms,therefore making huge enormous on the exchange rate disparity which is a misnomer which tantamounts to transferring wealth from the poor to the rich,”he said .
Gundani added that the plans were not in the interests of the public as the market value of gold is way beyond the general publics reach and many Zimbabweans would will not be able to afford the gold coins.
“The could coins are coming in form of one troy ounce.One ounce at the global market prices to day is US$1 750.An averages Zimbabwean earns maybe US$150 so one needs to serve for more than 12 months for he or she to be able to buy one coin so clearly this is not designed for the poor.It is designed for the rich,”Gundani added
The RBZ governor John Mangudya, said that the gold coins can be bought with local currency, the U.S. dollar, and other foreign currencies. The price will be set based on the international price of gold and production costs.
The 22-carat coin known as Mosi-oa-Tunya which are named after the Victoria Falls will be identified by a serial number and can be easily converted to cash, tradeable locally and internationally and used to transact.
The coin forms part of measures to deal with a currency crisis that has seen the annual inflation rate jump to 192% in June and a sharp depreciation in the Zimbabwean dollar, which has lost more than two-thirds of its value against the dollar this year.