Zimbabwe says it will introduce gold coins later this month to combat soaring inflation and a currency slump. The central bank of the country also announced plans to make the US dollar legal tender for the next five years. The central bank's main interest rate was more than doubled to 200 percent this month, after annual inflation surpassed 190 percent. This year, the Zimbabwean dollar has lost value against major currencies.
The gold coins, which will contain one troy ounce of 22-carat gold, will be available on July 25, according to John P Mangudya, Governor of the Reserve Bank of Zimbabwe.
A troy ounce is a Middle Ages unit of measurement used for weighing precious metals such as gold, silver, and platinum. 31.10g equals one troy ounce.
"The gold coins will be available for sale to the public in both local currency and US dollars and other foreign currencies at a price based on the prevailing international price of gold and the cost production," Mr. Mangudya added.
According to the statement, each coin will be identified by a serial number and will be easily convertible to cash both locally and internationally.