On the eve of the expected launch of a new gold-backed currency, Zimbabwe’s central bank announced on Thursday that it has gold reserves equivalent to 2.5 tons.

New Bank Governor John Mushayakarara tells President Emmerson Mnangagwa in Harare about the bank’s balance sheet position after reviewing the Reserve Bank of Zimbabwe’s assets. Good, with gold reserves and other minerals worth $175 million.

“I have taken over control of the central bank,” Mushayakalala said. “One of the things I had to do after taking over was to verify the assets held by the central bank. This morning I showed him the gold in the vault and I could Confirmation that we have 1.1 tons of gold in the vaults of our central bank.

“We have other minerals – diamonds and so on. If converted to gold, [they would] Equivalent to 0.4 tons of gold. We have other gold stored overseas. Worth 1 ton of gold. “

On Friday, Mushayakalala is expected to announce the launch of a gold-backed currency to replace the worthless local dollar, which currently trades at about 30,000 to the dollar and, unlike the South African rand, is not Circulation in neighboring countries.

This is the first time in recent history that the central bank has accounted for its gold and mineral assets. Mnangagwa said he was delighted to see in person the assets handed over to Mushayakalala by outgoing Reserve Bank of Zimbabwe governor John Mangudia.

Responding to a reporter’s question about whether the country has enough gold to back its expected new currency, Mnangagwa said: “I assure you that my government will not act on rumors. We are based on facts. Rumors can continue to circulate, but you have been able to come here and see the facts for yourself. So you should compare the facts you see today with the rumors you hear on the street.”

The press conference sparked widespread debate on social media, with some saying the country’s gold reserves had been looted. Pedzisayi Sakupwanya, a businessman allied to the ruling ZANU-PF party, said he delivered 13 tons of gold to the central bank last year.

Since independence in 1980, Zimbabwe has introduced and abandoned at least five currencies, all of which have devalued to near worthlessness. It remains to be seen how this new gold-backed currency will be accepted by the public and how well it will trade against the US dollar and South African rand.