Over US$11.4 million (equivalent) bid for gold-backed digital tokens in first issue

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Staff Writer

We were not able to buy gold tokens before the deadline yesterday. We tried different banks and came up short in all cases.

One bank told us they were waiting on instructions from their Head Office on how they should process gold token purchase requests. One told us that they stopped accepting offers the day before the actual deadline. Where the deadline was the 11th of May at 12pm, their own was the 10th at 2pm.

While we were not able to buy our own, some were able to participate and the Reserve Bank of Zimbabwe has updated us on what transpired during this first window of the gold tokens being on sale.

RBZ GOLD-BACKED DIGITAL TOKENS ISSUE NO. 1/2023 RESULTS
The Reserve Bank of Zimbabwe would like to notify the public of the results of the RBZ Gold-backed Digital Tokens issue No. 1/2023 held on Friday 12 May 2023. The Bank received 135 applications valued at ZW$14,077,337,421 to purchase gold-backed digital tokens. The full amount was allotted. The details of the results are as follows:

ZW$US$
Date of Issue12 May 202312 May 2023
Number of Bids Received1323
Value of Bids Received14,077,337,421810
Amount Allotted14,077,337,421810
Price per Milligram of Gold100.870.0688
Milligrams of gold purchased 139,559,20911,773

Total milligrams of gold purchased: 139,570,982 (139.57 kg of gold)

RBZ GOLD-BACKED DIGITAL TOKENS ISSUE NO. 2/2023

Applications under the second issue of the RBZ gold-backed digital tokens should be submitted through banks during the course of the week for settlement and issue on Thursday, 18 May 2023.

RESERVE BANK OF ZIMBABWE
12 MAY 2023

In US$ terms, the total value of bids placed was over US$5 million if we use a USD/Swipe black market rate of 1:2800. It is US$11.4 million if we use the Willing Buyer Willing Seller rate of 1:1235.

The market is testing them out before committing to converting ZW$ reserves into gold tokens is my guess. Yet, it was a respectable first week in my opinion.

Did you place your own order? Or are you surprised people are actually bidding for the tokens?

Also read:

IMF says Zimbabwe’s gold-backed digital tokens likely a bad idea

Digital gold tokens – here’s how you go about purchasing. Not all banks are ready

16 comments

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  1. Isheanesu

    And where will all this $5 million go?
    Looted.

    Reply
    1. Sadness

      Not looted. Willing buyer Willing seller 😏

      Reply
      1. Jackoby

        RBZ has been tagged in the laundering schemes aired in al Jazeera documentaries,as a country tirikumboendepi

        Reply
    2. Imi Vanhu Musadaro

      Looting hasn’t happened (yet). The looting will happen in 180 days time, when the half price ZWL token will now be redeemed at full price USD value. Works out an “interest rate” of 200% per annum.

      Reply
  2. Watching that Space

    132 sounds like institutions sitting on lots of ZWL, maybe a few Bonas and Simbas

    Reply
  3. Wrong Problem

    The gold token does not address the electronic bond notes being printed willy nilly to fund the new moneys for comerades and mujibas and other fancy electioneering campaigns. The printing of bonds will continue to hammer the ZWL bond rates to the USD

    Reply
    1. Inspector Muregedze

      Unopenga

      Reply
    2. Hh

      The lackof information given by the bank shows kuti vanhu awa vakunyepa

      Reply
  4. Isaac

    Okay, so even after the Banks delayed & closed the bids early, they still managed to process ~140kg worth of gold at $0.0688 per mg. I think that’s quite impressive honestly. Seems like while most people don’t trust the government or banking system, they’d rather have a gold token certificate than hold on to the Bond notes.

    Reply
  5. Anonymous

    I’m not surprised that people are bidding … But we need billions worth of Gold for the system to actually work so that anyone will have a choice to either buy a gold coin or buy food , and the real reason some banks didn’t go through with this it’s because there wasn’t enough gold for all the banks.

    Reply
  6. Money Laun­derers Required

    Sell USD on the black market get ZWL bonds, go and buy tokens. Repeat!

    Reply
    1. Isaac

      😂 Black is Gold

      Reply
  7. ABC

    What comes first…the egg or the bird? In this case, the Economy or the currency? My understanding is ,have an economy first then think of how you can facilitate trade by then introducing a currency which will be strong if your economy is also strong or weak if your economy is also weak. At this juncture, can we honestly say that we have a strong economy that necessitates backing up with gold or whatever?

    Of what use is any curreny….whether fiat or real gold currency in a ‘drunk’ mismanaged economy that rewards arbitrage and punishes hard work.

    Those that toil in formal employment to provide basic essential services that improve the standard of living are punished by rtgs pay, laughable cash withdrawal limits, inaccessible real currency that they are forced to buy on the black market, very high interest rates if forced to borrow a worthless currency, high transaction charges of sorts,high P.A.Y.E.

    When a currency is said to be backed by something e.g gold, it means a Government can liquidate the reserves backing its currency in times of financial crises without notice, i.e. whether you like it or not…remember the one to one bond note to us$ fallacy, something like that. So, If you have as many crises daily, then ……….

    Reply
    1. 20

      At the end of day I would rather have the physical gold. What’s the difference between this and a gvt bond. If the rate moves faster it will dead as a dodo. Your saved yourself techzim.

      Reply
  8. Y

    The free-fall of the ZWL on forex auction continues unabated. On 16th May it ZWL rate fell by 15.8% compared to 13.3% on the 9th of May. We still don’t have proof the government’s diagnosis and treatment of the problem is correct. Gold coins and tokens seem not to bridge the gap between supply and demand for USD. It seems the government is just making some folks and companies rich rather than using the scarce gold reserves to support the exchange rate of the ZWL to the ZWL.

    Reply
  9. Y

    * Gold coins and tokens have failed to bridge the gap between supply and demand for USD.

    Reply

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