Harare – Finance and Economic Development Minister, Professor Mthuli Ncube has appointed a nine-member Monetary Policy Committee (MPC) of the Reserve Bank of Zimbabwe as the government hopes to restore lost public confidence in the monetary policy and wider financial institutions.
The development comes at a time the country is currently battling a series of economic woes among them, foreign currency and cash shortages, depreciation in the value of local currency and high inflation.
Since the coming to power of the new political dispensation under President Emmerson Mnangagwa’s leadership, the economy has tumbled even worse with the costs of living becoming increasingly tough for many.
The country’s GDP has since been predicted to grow negatively in 2019 effectively pointing towards a recession while the threat of food insecurity with about 5.5 million of the rural population reportedly in dire need of food aid is adding to the challenges currently escalating.
Despite government’s efforts to bring sanity in the market by stabilising inflation and exchange rates through abandoning the 1:1 exchange rate and the subsequent introduction of the interbank foreign exchange market, scrapping of the multi-currency regime and establishing the Zimbabwean dollar as the sole legal tender for all domestic transactions, the market has failed to respond positively.
The negative reactions have since been alluded to a lack of confidence in government’s policies and this has prompted the government to establish the MPC.
The MPC will be chaired by RBZ Governor Dr John Mangudya whilst other members include Mr Kumbirai Katsande, Professor Ashok Chakravarti, Mr Douglas Munatsi, Mrs Marjorie Ngwenya, Mr Eddie Cross, Professor Theresa Moyo, Deputy Governor Dr Kupukile Mlambo and Deputy Governor Dr Jesiman Chipika.
The MPC itself faces a stern confidence test and its usefulness will not go unmeasured as the government is preparing for the return of the Zimbabwean dollar.
Equity Axis News
Raynold Mhotseka is a Journalism and Media Studies student at the University of Zimbabwe. He serves as a news writer at financial research firm, Equity Axis where he is currently on attachment. He can be contacted through the following email links, firstname.lastname@example.org and email@example.com.