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Reserve Bank of Zimbabwe restructures

by Lungile Tshuma
13 Jul 2014 at 11:42hrs | Views
THE Reserve Bank of Zimbabwe has announced a restructuring programme that will see the streamlining of operations and a change in the organogram under a new strategy termed "Back to Basics" meant to improve efficiency and ensure the central bank performs its core monetary policy mandate.

RBZ Governor Dr John Panonetsa Mangudya, in a memorandum written to all the bank staff dated 1 July 2014, said the strategy would take the bank forward and pursue the bank's major functions.

The changes were effected at the beginning of this month.

He said due to the many challenges the economy had gone through, it was no longer possible to continue with the developmental strategy that the bank pursued in the last 15 years.

"We need to change course," he said.

Dr Mangudya said the "back to basics" programme was a strategic change programme to financially stabilise the bank, adhere to good corporate governance, restore credibility and regain trust from stakeholders, sharpen focus and create a coherent team.

He said the major changes in the new organogram will see international relations division been subsumed in economic research division, the strategic planning division being removed from the structure and staff from the division being absorbed in the other divisions.

The bank secretary portfolio has been amalgamated to include legal services and corporate affairs and the term senior division chief has been replaced by divisional director.

"Dr Millicent Mombeshora is retiring from the bank. I would like to express my sincere gratitude for her dedication to the duty during her tenure with the bank and wish her well in her future endeavours," said Dr Mangudya.

Dr Mombeshora was the head of strategic planning and special projects in the Governor's office.

However, according to the organogram, the central bank will retain two deputy Governors. There will be six directors heading different portfolios.

The portfolios are Economic Research, Human Resources and Support Services, Exchange Control, Bank Supervision, Finance and Procurement and Financial Markets.

The RBZ chief also said the bank had a role to play as enshrined in the constitution and this function calls for the bank to develop key strategies that will assist in mobilising resources.

Some of the key functions of the reserve bank would be to license and regulate the financial system, to formulate and implement monetory policy, safeguarding the national payments system, providing monetary and economic policy advice to Government, to act as banker and financial advisor to Government.

He said measures put in place would help in the "resuscitation of the lender of last resort function, commencement of the interbank market and capitalisation of the bank".

He said the bank was attending to the outstanding staff issues relating to the payment of outstanding back pay for staff and the payment of retrenchee obligations.

Dr Mangudya, an economist and former CBZ Holdings chief executive, was appointed to head the central bank effective 1 May.

He took over from Dr Gideon Gono who stepped down from the RBZ last year after serving for 10 years.

Source - Sunday Mail
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