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Golden Sibanda Business Reporter
Government was always never going to look further than seasoned banker and economist, Dr John Panonetsa Mangudya, to fill in the position of substantive Governor of the Reserve Bank of Zimbabwe. The appointment was spot on, not least because such a tough call would require people of Dr Mangudya’s calibre, but also because this required a character that would instil confidence in banking.
President Mugabe has appointed Dr Mangudya for a five-year term effective May 1, 2014. This sets the tone for transformation of the central bank to optimally perform its roles as the monetary authority.

Dr Mangudya’s experience at the helm of first, CBZ Bank and later CBZ Holdings puts him in good stead to handle the revival of all functions of the central bank to set the economy on growth path. He has a mammoth task ahead of him as central bank chief and Government should be applauded for its perceptive determination of the appropriate person to handle this arduous task.

Regardless of the challenges Dr Mangudya will face in improving the banking and financial services sector, the nation draws confidence in that his peers in the banking sector, business and labour have all endorsed him as the most suitable for the job.

There will always be the easy and mundane responsibilities of a central bank such as handling Government accounts, for which there should be smooth transition as CBZ Bank has performed the function with aplomb thus far, which he does not need to worry about. But the role of a central bank is more complex than that.

As the banker and advisor to the Government, Dr Mangudya will be in better standing of judging the general financial condition of the country’s finances and, as one of his roles, giving appropriate advice to the Government and/or taking the necessary remedial measures.
On behalf of Government, the Reserve Bank manages the Government debt, acts as registrar of Government stock and conducts the Treasury Bill Tenders, where applicable issues notes and coins while taking custody of gold and other foreign assets.

There also is the complex responsibility of formulating and implementing the monetary policy, especially in an economy that currently does not have its own currency, which demands that the governor be an individual of strong character and right qualifications.

Dr Mangudya comes in to fill the huge void left by ex-central bank chief Dr Gideon Gono at a time the domestic economy is being battered by the negative impact of a suffocating liquidity crisis. His ideas will be key to resolving the protracted liquidity crunch.

Dr Mangudya said he was not yet prepared to comment on any issues regarding his appointment.