In an effort to combat the country’s spiraling inflation and depreciating currency, Zimbabwe’s central bank has 
introduced gold coins.After the annual rate of inflation increased above 190 percent this month, the primary interest rate of the central bank was more than doubled to 200 percent.Each coin will cost the same as an ounce of gold on the global market plus an additional 5% for production costs.
On Friday, the price of an ounce was approximately $1,724 (£1,435).John Mangudya, the governor of the Reserve Bank of Zimbabwe, says that if stores have adequate change, customers would be able to utilize the coins.The term “Mosi-oa-Tunya” on the coin refers to Victoria Falls, which are located on the border between Zimbabwe and Zambia. It means “The Smoke Which Thunders” in English.Compared to other major currencies, the value of the Zimbabwean dollar fell this year.
The late Robert Mugabe, who governed for nearly four decades, is widely remembered for the economic catastrophe he brought about.It was obliged to give up the Zimbabwean dollar in 2009 due to hyperinflation and chose to accept foreign currencies instead, mostly the US dollar.A mid-November 2008 estimate put the inflation rate at 89.7 sextillion percent year over year, although the government stopped releasing official inflation numbers during the severity of the crisis.
The 100 billion Zimbabwean dollar banknote was viewed as a symbol of the country’s economic collapse at the time.Ten years later, the local currency was brought back, but it has since fallen sharply in value.
