President Mnangagwa visited Zimbabwe's central bank vaults to see the country's gold reserves backing their new currency. The Reserve Bank showed him 3,400 kilograms of gold collected from mining royalties over two years. Zimbabwe started with just 1,500 kilograms of gold when the program began in April 2024.
The president ordered the bank to build gold reserves after Zimbabwe faced years of inflation and economic problems. Small-scale miners contributed most of the gold after the government made their work legal. The central bank governor said 326 gold bars sit in the vaults with each bar weighing 10 kilograms.
Zimbabwe's gold reserves have grown 126 percent during the past 14 months and gained value as global prices rose. The country ranks sixth among African nations for gold holdings. The Reserve Bank holds foreign currency worth $701 million that fully covers the ZiG currency in circulation.
Economists say gold helps central banks during financial crises because it keeps value better than paper money. Zimbabwe's gold-backed currency has created the longest period of economic stability the country has seen in years. The International Monetary Fund recently praised Zimbabwe's economic improvements and currency stability efforts.
The president ordered the bank to build gold reserves after Zimbabwe faced years of inflation and economic problems. Small-scale miners contributed most of the gold after the government made their work legal. The central bank governor said 326 gold bars sit in the vaults with each bar weighing 10 kilograms.
Zimbabwe's gold reserves have grown 126 percent during the past 14 months and gained value as global prices rose. The country ranks sixth among African nations for gold holdings. The Reserve Bank holds foreign currency worth $701 million that fully covers the ZiG currency in circulation.
Economists say gold helps central banks during financial crises because it keeps value better than paper money. Zimbabwe's gold-backed currency has created the longest period of economic stability the country has seen in years. The International Monetary Fund recently praised Zimbabwe's economic improvements and currency stability efforts.
