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RBZ says 313,9 kgs worth gold-backed digital tokens sold to date

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By Alois Vinga


THE Reserve Bank of Zimbabwe (RBZ) has to date sold gold-backed digital tokens equivalent to 313, 9 kgs, in the process mopping up billions of excess ZW$ liquidity in the economy.

In a drastic step to deal with high inflation, the RBZ this year introduced digital tokens backed by gold reserves to complement the national currency and also serve as an alternative investment option as opposed to chasing after the US$ on the parallel market.

The digital tokens can be transferred between people and businesses as a form of payment and are projected to stabilise the Zimbabwean dollar.

After Nigeria launched its e-Naira digital currency in 2021 and Ghana and South Africa began piloting their versions, several other African countries – including Namibia, Zambia, Madagascar, Eswatini, Mauritius, Tanzania, Rwanda, Kenya, and Uganda – are exploring the possibility of rolling out their digital currencies.

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An update released by the RBZ this week reveals a significant amount of money in ZW$ was mopped up just this week from buyers who have seized an alternative platform to hedge their local currency against a sound investment.

“The RBZ would like to notify the public of the results of RBZ Gold Backed Digital tokens issue 6/2023 held on Thursday 15 June 2023. The Bank received 35 applications ZW$3 billion and US$4 199, 98 to purchase gold backed digital tokens,” said the update.

The number of bids received ZW$ currency was 33 in and just two for US$.

The price per milligram in local currency was ZW$437,87and US$0, 0660 in foreign currency.

This week, the total milligrams of gold purchased was 6,58 kgs  and a cumulative  313, 9 kgs of gold since the gold backed digital tokens hit the market.

“Applications under the seventh issue of the RBZ gold backed digital tokens should be submitted through the banks during the course of the week for settlement and issuance on Thursday 22 June 2023,” the central bank added.