THE second batch of gold-backed digital tokens mopped out $8 billion down from $14 billion registered last week, the Reserve Bank of Zimbabwe has said.
On Thursday, a total of 104 bids in local currency were received with two in United States dollars.
“The Reserve Bank of Zimbabwe would like to notify the public of the results of the RBZ Gold-backed Digital Tokens issue No.2/2023 held on Thursday 18 May 2023.
“The Bank received 106 applications valued at ZWS8,063,137,030.20 and US$2,100 to purchase gold-backed digital tokens,” reads part of the statement.
Total milligrams of gold purchased was 71,64 kgs.
The central bank said applications under the third issue of the RBZ gold-backed digital tokens should be submitted through banks during the course of the week for settlement and issuance on 26 May.
The gold-backed digital tokens just like the gold coins have a vesting period of 180 days and can be redeemed afterward based on the international gold price as determined by the London Bullion Market Association (LBMA) PM fix payable in either local or foreign currency.
The gold-backed digital tokens are meant to expand the value-preserving instruments already available to stabilise the economy.
The gold-backed digital tokens follow the successful injection of Mosi-oa-Tunya gold coins in July last year, which started with higher-denominations and later followed up by smaller denominations in November due to high demand in the market.
The central bank has said gold-backed digital tokens will have prescribed asset status and liquid asset status and be acceptable as collateral and tradable.
Settlement will be done in local or foreign currency.
Source : Chronicle
