In 1965, after Rhodesia declared unilateral independence from Britain, it was expelled from the #SterlingZone. Immediately, the colony began to run out of Sterling notes. In early 1966, Rhodesia ordered replacement notes from a German printer, but a court interdict forced Germany to burn the consignment.
In April 1966, the UN Security Council voted for the British government to use force to prevent oil from reaching Rhodesia through Beira. Kenneth Kaunda later instituted a $3 billion lawsuit against British Petroleum for continuing to supply Rhodesia with fuel while Britain turned a blind eye.
In October, Rhodesia began to print its own currency notes. On November 11, 1966, the Rhodesian government introduced 14,000 gold coins as a store of value in preparation for sanctions, and the IMF said nothing.
In December of the same year, the UN imposed mandatory sanctions on Rhodesia. What is interesting is that before the sanctions were imposed, the British government allowed the Rhodesian government to transfer its gold reserves to apartheid South Africa as collateral.
From then on, this gold was used to borrow from various banks, including Rothschild's #MBCA (Merchant Bank of Central Africa), various Austrian, German, French, and South African banks, using the gold as collateral.
Not only that, but the Rhodesian government created two state companies called #UNIVEX and #RhodesianCorporation to hold western foreign accounts and control all foreign companies that were forced to put sanctions on Rhodesia.
Overall, it's important to understand the historical context surrounding Rhodesia's use of gold coins and the actions taken by various governments and institutions in response to its separation from Britain.
Written by Rutendo Matinyarare Chairman of ZASM and Founder of Frontline Strat Marketing Consultancy.