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Mnangagwa to replace Mangudya as RBZ boss?

by Staff reporter
28 Sep 2023 at 16:03hrs | Views
A GLOBAL recent ranking of central bank governors has given Zimbabwe's John Mangudya the lowest grade amid speculation that he may be replaced as President Emmerson Mnangagwa reshapes his administration.

New York-based magazine Global Finance, which reviews central banks, recently reviewed the performance of the central bank governors of some 102 countries around the world.

It marked the Reserve Bank of Zimbabwe boss as one of only three to get that ranking together with Bangladesh and the south American country of Suriname.

"Trial and error continue to define John Mangudya's tenure at the Reserve Bank of Zimbabwe (RBZ)," the magazine said in a commentary on the ranking.

Despite selling $97.2 million in tokens since the April launch, the Zimbabwe dollar is again on the verge of collapse, having lost more than 80% of its value since the beginning of the year and leading Zimbabweans to ditch Zimbabwe dollars for US dollars.

The magazine added; "The currency crisis and inflation at 101.3% in July, down from 175.8% in June, have made the RBZ halt policy hikes after raising its benchmark rate to 150% in June.

"In all fairness, Mangudya faces regular political interference and is unable to curb the appetite for borrowing in President Emmerson Mnangagwa's government."

Regional counterparts such as South Africa's Lesetja Kganyago fared better, scoring an A- and was lauded for having "proactively discharged the core mandates of the South African Reserve Bank (SARB), particularly containing inflation".

Elsewhere, Bank of Zambia (BoZ) Governor Denny Kalyalya was ranked B+, getting praise for playing a key role as the country managed to "secure a $6.3 billion debt restructuring deal with key creditors, such as China, and made progress in restructuring another $3 billion owed to international bondholders."

The ranking comes at a time social media has been speculating that President Emmerson Mnangagwa will likely replace Mangudya who is serving his final term at the RBZ.

Mangudya was first appointed to the Apex bank post in 2014 with Mnangagwa extending his reign for a second five-year term in 2019.

However, after yet another bitterly disputed re-election, the Zanu PF leader has been making changes to key government roles, mostly appointing close allies including his family members.

Social media was this week rife with speculation that Mangudya would likely be replaced by John Mushayavanhu, who is currently, group CEO and banking group FBC Holdings.

Source - NewZimbabwe