CURRENT AFFAIRS

Detailed explanation-1: -UPSC Mains. Q. Which of the following country has launched gold coins to tackle the soaring inflation? Notes: Zimbabwe’s central bank has launched gold coins to tackle the soaring inflation in the country.

Detailed explanation-2: -Internationally, gold coins are used in countries such as China, South Africa and Australia to hedge against inflation and as an investment opportunity, although they are not as widely used as currency as envisaged by Zimbabwe’s central bank, said Chitambara.

Detailed explanation-3: -Zimbabwe has launched gold coins to be sold to the public in a bid to tame runaway inflation that has further eroded the country’s unstable currency. The unprecedented move was announced by the country’s central bank, the Reserve Bank of Zimbabwe, to boost confidence in the local currency.

Detailed explanation-4: -The country’s central bank, the Reserve Bank of Zimbabwe, said that because the value of the one-ounce, 22-carat coins would be determined by the international price of gold they will help tame the runaway inflation and stabilize the nation’s currency.

Detailed explanation-5: -The gold coins were introduced on 25 July as part of several policy measures to ease demand for the greenback, stabilise the Zimbabwe dollar exchange rate and tame resurgent inflation. Sky-rocketing inflation saw people rushing to cash in their Zimbabwean dollars for US dollars, to stop their savings losing value.