RESERVE Bank of Zimbabwe (RBZ) governor John Mangudya says the central bank should not be blamed for the country’s often unpopular monetary policies but blame should be directed towards policy makers within government corridors.
He said the apex bank was merely an adviser to government and it was unfair to criticise its operations.
Mangudya was giving oral evidence before parliament’s Budget, Finance and Economic Development committee Monday.
“I will tell the role of the central bank; it is to manage money supply in the economy to guard against inflation,” he told the committee.
“The role of the central bank is to advise the Executive and central bank is not the Executive. Ours is to advise the Cabinet. You cannot then blame me the messenger for relaying the message or to say the messenger has failed.”
The MPs had, during deliberations, condemned the central bank’s often disastrous policies saying they had failed to fulfil the economic aspirations of ordinary Zimbabweans.
However, in defence to RBZ’s operations, Mangudya said the country was facing deep economic challenges and there was need to work hard in reviving the economy.
“The frequency of meetings in this country is a sign that things are not right. It’s a sign that the economy is not doing well. We need to work very hard, “ he said.
However, commenting after the parliamentary hearing, MDC Vice President and Harare East MP, Tendai Biti accused the RBZ of carrying out rogue money printing activities.
“For those the gods are about to destroy they first make mad. Law does not allow this,” wrote Biti on Twitter.
“The eclectic application of the currency is a faux pas that shows beyond doubt that de-dollarisation was ill-thought process designed to benefit the few that use the Reserve Bank as personal account.
“Thanks to high fiscal deficits monetised through rogue money printing activities by the RBZ, the SMP (Staff Monitoring Programme) is dead and irredeemably dead. The mismanagement of foreign currency and monetary policy, corruption, lack of reforms and political banditry make Zimbabwe a basket case that should be avoided like a plague,” said Biti. – Newzim