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AMG approaches RBZ on currency

08 Nov, 2019 - 12:11 0 Views
AMG approaches RBZ on currency Frank-Buyanga

H-Metro

H-Metro Reporter

AFRICAN Medallion Group 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 relieve 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 out 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.

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