The new Governor of the Reserve Bank of Zimbabwe Dr John Mushayavanhu assumed office yesterday after his appointment was moved a month earlier, amid high expectations for him to hit the ground running and announce policy measures to curtail rising inflation and stabilise the exchange rate.
This effectively means the announcement of the long-awaited
Monetary Policy Statement is imminent. It is expected to address key issues
related to macro-economic stability.
President Mnangagwa appointed Governor Mushayavanhu in
December last year well in advance of the formal handover from Dr John
Mangudya, who was coming to the end of his second and final term. Reserve Bank
governors are allowed a maximum of two five-year terms.
Dr Mushayavanhu was scheduled to assume office on May 1.
Finance, Economic Development and Investment Promotion
Minister Professor Mthuli Ncube confirmed the assumption of office by Dr
Mushayavanhu in General Notice 410 of 2024, published yesterday, to pave the
way for him to start work. So his five-year term runs to March 27, 2029.
It is hereby notified that His Excellency the President
has, in terms of section 14 of the Reserve Bank of Zimbabwe Act (Chapter 22:15)
appointed John Mushayavanhu as the Governor of the Reserve Bank of Zimbabwe for
a period of five years beginning on 28 March 2024, and ending on 27 March
2029,” he said.
Dr Mangudya moved to the new Mutapa Investment Fund as
chief executive.
Deputy Minister of Finance, Kuda Mnangagwa welcomed the
development saying the exchange rate volatility appeared to be linked to the
anxiety around the delay in the announcement of the Monetary Policy.
Writing on his X handle (formerly Twitter), he said: “We
have been receiving enquiries about the surge in the exchange rate, which right
now can be attributed to the anxiety and anticipation of the upcoming Monetary
Policy Statement which is around the corner.
“If I were to irresponsibly give unsolicited advice, I
would urge Zimbabweans with their hard earned ZWL (Zimbabwean dollars) not to
hedge against it.
“Government is committed to ensuring that there will be no
loss of value through the introduction of the currency stabilisation measures.”
Economist Mr Persistence Gwanyanya applauded the move
describing Governor Mushayavanhu as a veteran, astute banker and a man of
integrity fit for purpose saying.
“I have confidence in the incoming Governor, Dr John
Mushayavanhu. Importantly, Dr Mushayavanhu has a good understanding of
financial and economic matters that we face as an economy today. He is not
coming to RBZ to learn but to carry over from his predecessor, Dr Mangudya.”
Governor Mushayavanhu is coming into RBZ with the full
knowledge of the enormity of tasks that lie ahead and Mr Gwanyanya believes the
veteran banker is prepared to face the challenge.
Governor Mushayanhu is assuming the office when mineral
prices have fallen and at a time the country is confronted by drought, all of
which have far reaching consequences on currency stability.
To this end, Mr Gwanyanya urged everyone to support the new
man at the helm of the central bank in his new role, noting the interdependence
of the RBZ.
“Stability is our collective responsibility as Zimbabweans.
We all have a role to play. I know the Governor will face criticism from
pessimists but he should not look back.
“He needs to gather the courage to press ahead with the
task at hand with the full knowledge that our challenges are structural, long
term and cannot be sorted overnight.”
Mr Gwanyanya said it
would be remiss to talk about the incoming Governor without thanking the
outgoing Governor, Dr Mangudya for the race run and the fight he fought to get
the country to where it was today.
“I wish both of them good luck in their new roles,” he
said.
Confederation of Zimbabwe Industries president Kurai
Mtsheza told the Herald in an interview yesterday, following the announcement
of Dr Mushayavanhu’s appointment and commencement of duties, that the priority would be for the new
central bank chief to announce the MPS.
“The priority is to announce the monetary policy statement.
What it does is, traditionally, it is announced at the beginning of the year
and it sets the priorities for the ensuing year so we get guidance from that
monetary statement as an economy.
“It is critical that we know the thinking (of
policymakers), we deduce a lot of meaning and we tune our businesses to align
with that statement,” Mr Matsheza said.
The President appoints the Governor of the Reserve Bank in
terms of the Reserve Bank of Zimbabwe Act and the head of the Mutapa Investment
Fund in terms of the Sovereign Wealth Fund Act.
He can reappoint a Governor once for a second five-year
term but at the end of a maximum of 10 years there has to be a new person.
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