African Medallion Group (AMG) has written to the Reserve Bank of Zimbabwe requesting to create a formal gold-based currency that will be used as legal tender in Zimbabwe.
AMG is owned by South African based businessman Frank Buyanga and is in a coin dealer agreement with the South African Mint Company, a subsidiary of the South African Reserve Bank.
They believe their initiative will bring relief to the economy and the people of Zimbabwe.
According to letter written recently to the RBZ Governor, Dr John Mangudya, AMG also said that the introduction of a gold-backed currency would be the best option available to Zimbabwe.
“I am writing to you to requesting that you allow us to create a formal gold-based currency that will be used as legal tender in Zimbabwe. This will be great relieved to the economy and the people of Zimbabwe,” said Buyanga.
He said given the situation in the country, gold was more acceptable as a form of currency by combining its appeal as a store of value and a much more efficient medium of exchange.
“My executives are immediately available to start discussions on the creation of a new currency. We have done extensive research and are convinced it is time for us to introduce our gold backed currency in Zimbabwe. Every Zimbabwean is a shareholder in the progress of their nation,” he said.
Buyanga added, “Mr governor, as you may be aware, I am the founder of AMG with our headquarters in Dubai. We have in the past engaged in several exchanges with the RBZ. Our record in fighting for a better.
Zimbabwe, speaks for itself and our support for deals that will make us prosper as a nation is unquestionable.”
He said it was possible for Zimbabwe, with his company’s assistance and they were ready for this and willing to share the framework they envisage for a better Zimbabwe.
“Sir, Abu Dhabi recently installed one of the first gold ATMs, allowing customers to withdraw fiat currency in terms of everything from one-gram nuggets to larger gold bars. It is possible for Zimbabwe as well with our assistance and guidance.”
The AMG currently holds gold reserves in excess of US$1 billion.
In January this year, AMG signed a coin dealership agreement with the South African Mint Company, a subsidiary of the South African Reserve Bank for reselling and redistributing some of its products.
The South African Mint is one of the preferred manufacturers of coins and coin blanks in the world and has been the leading African mint, with over 120 years’ experience in supplying coins to Africa and the world.
Following the growing shift towards digital currencies and gold medallions as stable alternative stores of value, compared to fiat money, the Africa Medallion Groupon May 25 2017 launched a $5 African Medallion Dollar.
Only 100 of the $5 AMD were put in circulation, and holders got certificates that serve as confirmation and guarantee that they possess the genuine exchange and store of value articles.
By June 2017 the bid price for the $5 African Medallion Dollar had jumped by more than 2 000 percent in two weeks and had since broken past the $100 dollar psychological barrier.
As global financial markets become increasingly volatile, investors have been shifting their portfolios and investments towards more stable securities and havens.
And most investors have unsurprisingly hedged in gold.
The AMDs are specially crafted with bronze and engineered as a symbol to commemorate the 54th anniversary of the African Union (former Organisation of African Unity), founded on May 25, 1963.
Though the guaranteed buy-back amount was fixed at US$5 for each $5 AMD, the future value will be determined by value of trades. H Metro