Mixed reactions greet central bank reform bill

The Bill, which is still to be debated in the Senate before it is passed to Robert Mugabe to sign, will see Gonos powers within the central bank restricted, but with conditions. The Reserve Bank of Zimbabwe Amendment Bill will see the governor no longer chairing the banks board, and an independent board chair will instead be appointed. However, Gono will still wield significant power by chairing a proposed monetary policy committee.

ZANU PF legislators last week threatened to block the Bill, stating it was motivated by self-serving personal agendas. They said the Bill aimed to weaken Gono while giving too much power to Finance Minister Tendai Biti. But an agreement was reached this week between Biti and the ZANU PF lawmakers to make changes to the Bill, which was passed on Wednesday. One of these changes includes a controversial clause giving immunity to the bank governor and his employees for anything done in good faith and without negligence.

It remains to be seen if the restrictions the new Bill is set to impose on Gono will make a significant difference, as he will still remain in a powerful position as head of the monetary policy committee. Critics argue the Bill is merely a compromise, allowing ZANU PFs chief money-man to stay firmly in a position of financial-wielding power, while appeasing the MDC who want Gono removed as head of the Central Bank.

Independent economic analyst John Robertson explained that any restriction of Gonos powers should be welcomed. He did however argue that the success of the Bill will firmly rest on its full implementation, and on what independent candidate replaces Gono as Reserve Bank board chairman. Critics however argue that it would appear that the MDC is merely clutching at straws, allowing themselves to be forced into comprises that in essence will bring no change to Zimbabwe.

Political analyst Professor John Makumbe on Thursday explained the Reserve Bank Amendment Bill highlights the position of compromise the MDC has put itself in by agreeing to an originally flawed unity deal with ZANU PF.

This unity deal was always going to be about give and take, but Im afraid the MDC has given far too much to ZANU PF, Makumbe said.

The analyst continued that the clause giving Gono immunity was unfortunate, explaining that Gono is essentially being allowed to get away with murder. He added that potential foreign investors will likely still adopt a wait-and-see approach to the new bill once it has been signed, arguing that Gonos firm position of power, however reduced, will leave investors hesitant to place their money in the Reserve Banks grasp.

Meanwhile rumours are swirling that plans are underfoot to reintroduce the Zimbabwe dollar by December, amid reports that a plane-load of the local dollar was flown into the country last week. Sources say an Air Mauritius plane unloaded bundles of Zim-dollars at Harare airport last Friday, not long after Robert Mugabe himself said the local currency would be back.. Earlier this month, during a visit to the Zhombe area, Mugabe made the shock announcement that the Zim-dollar was coming back, and would be back by the end of the year.

Economist Dr Eric Bloch, in his weekly column published in the Zimbabwe Independent, said at the time that Mugabe and ZANU PF demanded the reinstatement of the Zimbabwe dollar because usage of any other currency constituted surrender of national sovereignty.

But the Zimbabwe dollar is so appallingly worthless that its usage at the present time represents naught, but sovereignty over nothing, wrote Bloch.

Attempts to contact Finance Minister Biti meanwhile were unsuccessful.