Business Reporter
THE Reserve Bank of Zimbabwe (RBZ) Gold Backed Digital Tokens (GBDT) latest sales has mopped up ZW$1, 2 billion further testifying the instruments’ significance in stabilizing the local currency.
Backed by gold, GBDT helps keep its value stable; this currency is tied to the market value of the gold – unlike a fiat currency.
The Zimbabwe gold-backed digital currency will be used as legal tender and a store of value alongside the Zimbabwean dollar and bond notes.
Users can buy and sell it using Zimbabwean dollars and other foreign currencies.
The move to introduce gold-backed coins is part of a wider plan by the central bank to stabilise the country’s ZWL currency by mopping up excess liquidity in the market.
The latest trading update shows that a significant amount of excess ZWL was mopped up.
“The RBZ would like to notify the public of the results of the RBZ Gold Backed Digital Tokens Issue No 20/20/23 held on Thursday 23 November 2023.The Bank received 9 applications valued at ZW$1,176,397,735.70 to purchase gold backed digital tokens and the full amount was allotted,” the update said.
The price of gold per milligram reached ZW$428, 45.
The cumulative milligrams purchased to date amounts to 396, 6 kgs.
“Applications under the 21st issuance of the RBZ gold backed digital tokens should be submitted through the banks during the week for settlement issuance on Thursday 7 December 2023,” the RBZ added.
