The hike in prices was a measure to control the inflation. The Central Bank governor, Gideon Gono, mentioned in an official statement on July 25, that “As a country, our gold production levels have lately fallen victim to escalating operating costs, as well as elements of indiscipline, side-marketing and smuggling.â€
Zimbabwe's Central Bank has escalated the price of gold by 757% to safeguard its abuse by smugglers and control operating costs. The current gold price has been increased from Z$350,000 per gram to Z$3 million per gram.
The need to increase the price was mainly due to the hyperinflation economy currently existing in Zimbabwe. A large percentage of the population remains unemployed (80%), along with shortage of power, fuel and such, and inflation rate is touching 5000%, as reported by the UN-backed humanitarian news and analysis service, IRIN.
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