The following report is by The Trends Journal:
The coin sales had totaled as much as 25 billion Zimbabwean dollars through March and “aided the dissipation of domestic inflationary pressures,” the bank said in a recent statement.
Beginning in November, the gold coins will be redeemable for the country’s new digital currency that is backed by gold in the central bank’s reserves.
Zimbabwe produced about 35 million tons of gold last year, much of which was bought by the central bank.
Gold equaled its record price of $2,072 per ounce earlier this month. It was trading at TK at 5 p.m. U.S. EDT on 15 March.
The value of Zimbabwe’s coin is tied to the official value of Zimbabwe’s currency, which has been sinking like the Titanic in recent months.
Zimbabwe uses both its own dollar and the U.S. dollar as domestic currency. Zimbabwe’s official exchange rate is 1,000 of its dollars for one U.S. dollar, but the black market rate recently reached 2,200.
Zimbabwe blends the two currencies to tally its official inflation rate, which was most recently gauged at 87 percent. The rate is far higher for Zimbabwe’s buck on its own.
To beat down inflation, the Reserve Bank of Zimbabwe has set its interest rate at 140 percent.
The new coin “has nothing to do with what’s happening on the ground,” economist Tinashe Murapata complained to the Financial Times. “It is a sideshow.”
The currency’s destruction is largely due to the government’s unrestrained printing of money, economists told the FT.
The country has been beset by hyperinflation since the Great Recession led to the collapse of Zimbabwe’s currency and the creation of a new Zimbabwean dollar in 2019 by the government that replaced dictator Robert Mugabe.
TRENDPOST: We note this article to emphasize the decline of the U.S. dollar and that more nations will be backing their currencies with gold… which will in turn push gold prices higher and more central banks shore up their currencies with gold deposits.
AUTHOR COMMENTARY
Over a week ago I reported that Zimbabwe announced that they would be issuing a gold-backed CBDC, but that report did not note that the government would actually be issuing an actual gold-backed coin that are convertible to the CBDC.
But in that report I said that I do not understand how any gold-backed CBDC will work, and I still don’t. What’s the point in having to convert the gold into the CBDC? If a central bank issued me gold I would keep the gold and stick with that alone; so I honestly just don’t know how this is going to work or if it is even sustainable, seeing as the whole point is to insnare people with the digital trap.
Whatever the case, avoid CBDCs.
The rich ruleth over the poor, and the borrower is servant to the lender.
Proverbs 22:7
[7] Who goeth a warfare any time at his own charges? who planteth a vineyard, and eateth not of the fruit thereof? or who feedeth a flock, and eateth not of the milk of the flock? [8] Say I these things as a man? or saith not the law the same also? [9] For it is written in the law of Moses, Thou shalt not muzzle the mouth of the ox that treadeth out the corn. Doth God take care for oxen? [10] Or saith he it altogether for our sakes? For our sakes, no doubt, this is written: that he that ploweth should plow in hope; and that he that thresheth in hope should be partaker of his hope. (1 Corinthians 9:7-10).
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