Zimbabwe says its only reserves are $500,000 in gold coins

via Zimbabwe says its only reserves are $500,000 in gold coins | Reuters Mar 5, 2014

Zimbabwe is holding gold coins valued at $501,390 (299,802.68 pounds) as its only reserves, enough to buy only 1,400 tonnes of maize, the finance minister said on Wednesday, highlighting the parlous state of the country’s finances.

The economy of the southern African country, which has slowed to 4-6 percent growth after four years of near-double digit growth, is the biggest challenge to veteran President Robert Mugabe, who was re-elected last July in elections disputed by the opposition.

“The (central) bank does not hold any gold reserves except for gold coins, which were valued at $501,390 as at the end of January 2014,” Chinamasa said.

Zimbabwe produced 13 tonnes of gold last year, well below the all-time record of 29 tonnes in 1998.

The cash-strapped and impoverished country plans to spend 70 percent of its $4.1 billion budget on paying salaries this year.

Shunned by traditional Western donors, the International Monetary Fund and World Bank over outstanding arrears and lack of foreign investment, Zimbabwe is struggling to grow the economy with its own meagre resources.

(Reporting by MacDonald Dzirutwe; Editing by Tom Heneghan)

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6 comments on “Zimbabwe says its only reserves are $500,000 in gold coins
  1. DL says:

    Are those the gold coins that were struck to celebrate Mugabe’s 89th birthday? It would be pretty funny if that’s all that’s left after his 90th birthday celebration and his daughter’s state wedding at the palatial home built on bribes by “well-wishers!” I guess we can all see where his priorities are! Does he really think anyone will give the country a cent after these displays of vulgar opulence? Chinamasa cries poverty, but the government turns around and buys luxury vehicles to bribe the newest government officials. I’m beginning to think that Zimbos have no sense of irony.

  2. MikeH says:

    “Zimbos have no sense of irony”……. they have no sense full stop.

  3. It is sad that the Zimbabwe reserves are less than Cuthberts salary. And if we be logical the Zimra boss wont get paid next month because he earns more that what the RESERVE BANK HAS IN IT’S COFFERS. Resign Zanu Government you are a disgrace.

    • MikeH You have been an icon on this Forum. I know you are disheartened but it wont help if you bring down Zimbabweans that are reeling under the worst dictatorship Southern Africa has ever known.

  4. NBS says:

    Looking for economic blessings? repent first! And stop the greedy plunder and theft. 35 years of it now. God will not be mocked!

  5. Sekuru Mapenga says:

    wow — $500,000 – not a lot for a whole country!! cuthbert dube gets more every month !!! …. actually now that the cupboard is bare, maybe mugabe and grace will pack up and go to singapore.

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