RBZ Accused Of Undermining Economic Recovery

An economic commentator has accused the Reserve Bank of Zimbabwe of sabotaging the economy through its vice-like grip on the allocation of scarce foreign currency through its network of patronage.

In a column for Newsday, Eddie Cross claimed that the destructive role of the RBZ started during the Gideon Gono era and has been continued by his predecessor John Mangudya. He writes:

Under the new dispensation, the first sign of trouble came in the monetary policy statement issued by RBZ governor John Mangudya just before Christmas.

In that statement was a single, short statement that the central bank was to establish a Monetary Policy Committee (MPC) which, in future, would be responsible for monetary policy, independent of the governor and the Minister of Finance.

This is standard practice in all countries with a stable currency. I heard a rumour that this inclusion in the statement has been forced on the governor by the new minister and his team.

… The struggle intensified in the first quarter of 2019. Eventually, Mnangagwa himself was forced to intervene between the two arms of government and he dictated a compromise.

The result was the Monetary Policy Statement issued five weeks later than promised and containing the words “willing seller, willing buyer”.

Like the sentence including the announcement of the formation of the MPC, this was included over the strong objections of the RBZ.

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Reserve Bank of ZimbabweJohn MangudyaEddie Cross

The Reserve Bank of Zimbabwe (RBZ) is the central bank of Zimbabwe. Its offices are located at number 80 Samora Machel Avenue in Harare. The Reserve Bank of Zimbabwe operates under the Reserve Bank of Zimbabwe Act, Chapter 22: 15 of 1964. The Act provides... Read More About Reserve Bank of Zimbabwe

John Panonetsa Mangudya is an economist and the current Reserve Bank of Zimbabwe governor. Mangudya, who sits on many local and international boards .He was made RBZ governor after the expiry of Gideon Gono's term in 2014. He had been CBZ Holdings Ltd Chief Executive... Read More About John Mangudya

Edward Graham Cross (born 1940) is a prominent Zimbabwean economist and politician. He is a former member of parliament for Bulawayo South. He was also a founding member of the Movement for Democratic Change (MDC-T). Following the Military Coup in November 2017, Cross became a... Read More About Eddie Cross

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