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UAE, Zimbabwe sign pact for Victoria Falls gold market

The Dubai Gold & Commodities Exchange and Zimbabwe’s Victoria Falls Stock Exchange signed a memorandum of understanding that may lead to the establishment of a gold market in the African country.

Justin Bgoni, chief executive officer of the VFEX revealed the report and said the country is seeking to open an exchange in a bid to create a reference market that will see miners offered competitive prices.

“It is a holistic approach to the needs of gold miners since it will raise capital and make it easy for them to sell,” Bgoni said.

International Crisis Group report

According to report more from research organization International Crisis Group than US $1.5 billion of gold is smuggled out of Zimbabwe every year, much of it to Dubai. An exchange could make it easier to sell the metal legally and locally.

Other commodities may also be traded on the exchange, should it be established. Zimbabwe is the second African country to seek an alliance with the DGCX. Earlier this year the Dubai-based exchange signed a memorandum of understanding with the Financial Markets Regulatory Authority in Sudan to boost gold trading between the two countries.

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