• Zimbabwe’s central bank plans to sell gold-backed digital tokens at $10 for individuals and $5,000 for corporations.
• The tokens will be sold in U.S. dollars and local currency with a 20% margin above the willing-buyer willing-seller interbank mid-rate.
• Interested investors can participate in the offer from May 8th, which will close two days later.
Zimbabwe to Sell Gold-Backed Digital Tokens
Zimbabwe’s central bank has announced plans to sell gold-backed digital tokens at a minimum price of $10 for individuals and $5,000 for corporations. The tokens will be available in U.S. dollars and local currency with a 20% margin above the willing-buyer willing-seller interbank mid-rate. Starting May 8th, interested investors can participate in the offer which will close two days later.
Price Set for Gold-Backed Token Sale
The Reserve Bank of Zimbabwe (RBZ) has set the price for its gold-backed digital token sale at $10 per individual and $5,000 per corporation or other entities. The local currency price of the gold tokens will have an additional 20% margin added on top of the prevailing interbank market rate between buyers and sellers wishing to trade currencies with each other.
What is Interbank Mid Rate?
Interbank mid rate is an exchange rate determined by prevailing market conditions such as supply and demand that banks are willing to buy or sell currencies from each other at a given moment in time. It is considered the “midpoint” between buying or selling rates and often used as a reference rate when banks or financial institutions quote their own exchange rates against another currency.
When Can Investors Participate?
The sale of Zimbabwe’s gold backed digital tokens starts on May 8th 2021 and closes two days later on May 10th 2021 allowing investors enough time to make their decision before participating in the offer should they choose to do so.
The introduction of Zimbabwe’s digital token is another step towards providing support for its own local currency which has seen a 37% decline against U.S dollar on official markets compared to this time last year when it was introduced