Business Reporter
WEEKLY sales of the Gold Backed Digital Tokens have mopped up a total ZW$715, 1 million in a sustained trend of bad money mop up , Reserve Bank of Zimbabwe (RBZ) reported Thursday.
The RBZ introduced the tokens in May this year confirming the instruments is backed by gold as legal tender.
The main objective was to help stabilise the ZW$ and protect citizens from currency fluctuations.
The gold-backed digital tokens are a form of electronic money backed by Zimbabwe’s gold reserves, held by the Central Bank.
The Bank’s intention is to allow Zimbabwean dollar holders to exchange their currency for the gold-backed tokens, offering protection against the volatility of the local currency basing on the understanding that there are limited investment instruments for the holders of the local currency who in turn flood the parallel market in pursuit of the US$.
In a notice this week, the RBZ revealed that a total ZW$715,1 million was mopped up through selling the instruments.
“The RBZ would like to notify the public of the results of the gold backed Digital Tokens Issue no 9/2023 held on Thursday 6 July 2023.
“The bank received 15 applications valued ZW$715, 1 million and US$79, 95 to purchase gold backed digital tokens,” the central bank said in a statement.
Market watcher are optimistic that the instrument, coupled with other existing strategies , will go a long way to stabilise exchange rates.
