Zimbabwe issues gold coins to combat rising Inflation
Many countries around the world are currently experiencing high inflation rates, and Africa is no exception. Zimbabwe has started selling gold coins to combat high inflation. Living conditions in Ghana have not been as bad as they have been for eighteen years and inflation is now rising by 30%. Families in Kenya are struggling with a high cost of living.
The central bank's key interest rate more than doubled this month to 200%, after the annual inflation rate exceeded 190%.
Each coin is valued at an international market price of one ounce of gold plus 5% for the cost of production.
As of Friday, an ounce cost about 1,724 pounds (1,435 pounds).
According to John Mangoudy, director of the Reserve Bank of Zimbabwe, it will be possible to use coins in stores if they contain enough trifles.
The piece is called "Musi AVA Tonya", which means "thundering smoke" and refers to Victoria Falls, on the border between Zimbabwe and Zambia.
The Zimbabwean Dollar has fallen against major currencies this year.
The country still remembers the economic chaos under the late Robert Mugabe, who ruled for almost four decades.
Hyperinflation forced them to abandon the Zimbabwean Dollar in 2009 and use foreign currencies, especially the US Dollar.
In the midst of the crisis, the government stopped publishing official inflation data, but according to one estimate, the inflation rate was 89.7% year-on-year in mid-November 2008.
At that time, the bank currency of one hundred billion Zimbabwean Dollars was perceived as a symbol of the country's economic collapse.
The local currency was reintroduced ten years later, but quickly lost its value.
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