Azadkashmir
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zimbabwe shocks the world, introducing a gold coin currency
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Hamartia Antidote
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Unfortunately this is now the way for China to legally siphon Zimbabwe's gold out of the country in a show of 21st Century resource colonialism.
www.thezimbabwemail.com
July 17, 2022
Henrietta Rushwaya
BY TATIRA ZWINOIRA
CHINA is among three top destinations for Zimbabwe’s gold that is smuggled out of the country every month valued at approximately US$157 million.
This was revealed in a recent report by the Centre for Natural Resource Governance (CRNG) titled ‘Zimbabwe’s Disappearing Gold: The Case of Mazowe and Penhalonga’.
Chinese miners have long been accused of not paying taxes or under-declaring revenues they make, which led to the banning of several diamond firms in February 2016.
“The gold dealers submit less than 30% of the gold to FPR, while the rest finds its way to South Africa, United Arab Emirates and other Asian countries such as China and India.
“Most smugglers prefer to exit the country by road to South Africa where the gold is flown from. Sources told CNRG that some of the gold is flown out of South Africa by private planes from Lanseria Airport,” reads part of the report under review.
“Gold smuggled from Zimbabwe is ultimately destined for South Africa, Dubai or China, with Dubai accounting for almost 60kg every month.
“Mozambique, Zambia and South Africa have also been used as routes to China and Dubai.
“It has been very easy for smugglers to transport the gold from sources to the borders and across the borders into neighbouring countries because the security is amenable to bribes and the borders are porous.”
CNRG added that for syndicates, which usually deal with huge contrabands, the smuggling pathways are pre-arranged and well-organised with the involvement of high-ranking politicians.
“Junior security officers take orders from their superiors to let go if ever they intercept the contrabands,” CRNG said.
Zimbabwe Miners Federation president Henrietta Rushwaya was arrested at the Robert Gabriel Mugabe International Airport in October 2020 for allegedly trying to smuggle six kilogrammes of gold.
The destination of the flight was Dubai, located in the United Arab Emirates.
Rushwaya has been linked with senior officials within the ruling party and the government.
“Gold smuggling in Zimbabwe is induced by arbitrage and the quest for USD cash.
“Actors in the smuggling rings are motivated by differences in prices between the sources and the destination markets as well as the real value of the currency of payment,” CRNG said.
“Prices at the sources in Zimbabwe start from US$40 per gram to $55. From May 2020, FPR has been paying small-scale and artisanal miners a flat price of US$45 per gram in cash on a ‘no-question-asked’ basis. Other gold producers have been paid under the 80:20 payment rate.”
CRNG added that the funds are deposited in bank accounts with limited cash withdrawals permitted.
“Gold smugglers prefer to sell gold in external markets where they are guaranteed cash payments and not bank transfers. In Zimbabwe, hard cash has more value than bank balances,” CRNG said.
However, responding to the report, the Chinese embassy in written responses to the paper said: “The Chinese embassy is not aware of the situation.
“What needs to be emphasised is that the Chinese side has always cracked down on illegal smuggling cases, calls on and believes the relevant departments of the government of Zimbabwe to strengthen supervision and crackdown on smuggling behaviors of enterprises and individuals in accordance with the law.”
Where have gold coins been used and have they worked, Zimbabwe Senator asks?
Information Minister Monica Mutsvangwa who is also leader of government business in the Senate was yesterday taken to task to explain how the introduction of go
www.thezimbabwemail.com
Where have gold coins been used and have they worked, Zimbabwe Senator asks?
“In Zimbabwe, how does the gold coin approach serve the challenges that are being faced by the civil servants, public servants and ordinary gogo, mbuya, grandma who is in Gokwe and Mberengwa? How do they benefit out of this approach, if ever it is an approach that is required to resolve the economic quagmire we are in Zimbabwe?” he asked.July 17, 2022
Zimbabwe’s smuggled gold destined for China - Zimbabwe Situation
CHINA is among three top destinations for Zimbabwe’s gold that is smuggled out of the country every month valued at approximately US$157 million.
www.zimbabwesituation.com
Zimbabwe’s smuggled gold destined for China
Henrietta Rushwaya
BY TATIRA ZWINOIRA
CHINA is among three top destinations for Zimbabwe’s gold that is smuggled out of the country every month valued at approximately US$157 million.
This was revealed in a recent report by the Centre for Natural Resource Governance (CRNG) titled ‘Zimbabwe’s Disappearing Gold: The Case of Mazowe and Penhalonga’.
Chinese miners have long been accused of not paying taxes or under-declaring revenues they make, which led to the banning of several diamond firms in February 2016.
“The gold dealers submit less than 30% of the gold to FPR, while the rest finds its way to South Africa, United Arab Emirates and other Asian countries such as China and India.
“Most smugglers prefer to exit the country by road to South Africa where the gold is flown from. Sources told CNRG that some of the gold is flown out of South Africa by private planes from Lanseria Airport,” reads part of the report under review.
“Gold smuggled from Zimbabwe is ultimately destined for South Africa, Dubai or China, with Dubai accounting for almost 60kg every month.
“Mozambique, Zambia and South Africa have also been used as routes to China and Dubai.
“It has been very easy for smugglers to transport the gold from sources to the borders and across the borders into neighbouring countries because the security is amenable to bribes and the borders are porous.”
CNRG added that for syndicates, which usually deal with huge contrabands, the smuggling pathways are pre-arranged and well-organised with the involvement of high-ranking politicians.
“Junior security officers take orders from their superiors to let go if ever they intercept the contrabands,” CRNG said.
Zimbabwe Miners Federation president Henrietta Rushwaya was arrested at the Robert Gabriel Mugabe International Airport in October 2020 for allegedly trying to smuggle six kilogrammes of gold.
The destination of the flight was Dubai, located in the United Arab Emirates.
Rushwaya has been linked with senior officials within the ruling party and the government.
“Gold smuggling in Zimbabwe is induced by arbitrage and the quest for USD cash.
“Actors in the smuggling rings are motivated by differences in prices between the sources and the destination markets as well as the real value of the currency of payment,” CRNG said.
“Prices at the sources in Zimbabwe start from US$40 per gram to $55. From May 2020, FPR has been paying small-scale and artisanal miners a flat price of US$45 per gram in cash on a ‘no-question-asked’ basis. Other gold producers have been paid under the 80:20 payment rate.”
CRNG added that the funds are deposited in bank accounts with limited cash withdrawals permitted.
“Gold smugglers prefer to sell gold in external markets where they are guaranteed cash payments and not bank transfers. In Zimbabwe, hard cash has more value than bank balances,” CRNG said.
However, responding to the report, the Chinese embassy in written responses to the paper said: “The Chinese embassy is not aware of the situation.
“What needs to be emphasised is that the Chinese side has always cracked down on illegal smuggling cases, calls on and believes the relevant departments of the government of Zimbabwe to strengthen supervision and crackdown on smuggling behaviors of enterprises and individuals in accordance with the law.”
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Hamartia Antidote
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Ordinary citizens of the country struggle to make ends meet. No way are they going to be able to buy the gold coin
Zimbabwe GDP per capita
The Gross Domestic Product per capita in Zimbabwe was last recorded at 1383.23 US dollars in 2023. The GDP per Capita in Zimbabwe is equivalent to 11 percent of the world's average. This page provides the latest reported value for - Zimbabwe GDP per capita - plus previous releases, historical...
tradingeconomics.com
per capita gdp (~$1,362) is even lower than the price of one coin (~$1,800). In fact per capita has never reached $1,800.
Wood
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Zimbabwe GDP per capita
The Gross Domestic Product per capita in Zimbabwe was last recorded at 1383.23 US dollars in 2023. The GDP per Capita in Zimbabwe is equivalent to 11 percent of the world's average. This page provides the latest reported value for - Zimbabwe GDP per capita - plus previous releases, historical...
per capita gdp is even lower than the price of one coin (~$1,800).
View attachment 866241
I cannot fathom how the government will justify this type of shenanigans to their population. Zimbabwe needs to find a good way to monetize their resources and raise agricultural productivity. Perhaps inviting the white farmers back to an equitable partnership can help them. Minting gold coins for the elites to stash capital under a rug will further slow economic growth
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