As part of Zimbabwe’s ongoing struggle to stave off a return to the dark ages, it recently began minting and selling gold coins. Some pundits are claiming that this heralds a return to a gold standard, but that would require paper currency denominated in a weight of gold with redemption for gold upon request. So far, these clowns seem to have all that completely backwards. Is there any hope for this train wreck of a nation?
The “Mosi-oa-tunya” coin, named after Victoria falls, can be converted into cash and be traded locally and internationally, the central bank said.
Last week, Zimbabwe more than doubled its policy rate to 200% from 80% and outlined plans to make the U.S. dollar legal tender for the next five years to boost confidence.
Annual inflation, which hit almost 192% in June, cast a shadow over President Emmerson Mnangagwa’s bid to revitalise the economy.