RBZ latest Gold Backed Digital Tokens sales mop up ZWL29,1 billion

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By Alois Vinga

THE Reserve Bank of Zimbabwe (RBZ) Gold Backed Digital Tokens (GBDT) mopped up ZW$29,1 billion from the market, the latest trading update has revealed.

The GBDT were launched with the objective of providing an alternative investment avenue for citizens to maintain the value of their savings and might expand to include payments.

Zimbabwe has long struggled with currency depreciation and exchange rate volatility, so the central bank had initially conceived the digital gold tokens as a store of value. The instruments are tradable and capable of facilitating Person-to-Person (P2P) and Person-to-Business (P2B) transactions and settlement.

Under the RBZ GBDT issue 1/2024 ZWL29,1 billion was mopped up  through sales.

“The RBZ would like to notify the public of the results of the GBDT held on Thursday, 11 January 2024. The Bank received 27 applications valued at ZW$ 29,100,343,075.02 to purchase gold-backed digital tokens and the full amount was allotted,” the RBZ said in a statement.

A total 46,9 kgs of gold was purchased under the issue and cumulatively 494,5 kgs of gold has been purchased.