Will new John tame Zim inflation?

A HERCULIAN task today awaits the recently appointed Reserve Bank of Zimbabwe (RBZ) Governor Dr John Mushayavanhu, when he introduces new monetary policy measures aimed at stabilising the volatile domestic currency and tame rising inflation.

Dr Mushayavanhu will present his maiden Monetary Policy Statement (MPS) amid a tough operating economic environment due to the sustained depreciation of the Zimbabwe dollar.

The local currency continued to depreciate faster, both on the formal and parallel market.

According to the Confederation of Zimbabwe Industries, the domestic unit had lost more than 49 percent of its year-opening value on the formal market and 30 percent on the parallel market since January.

In a bid to restore long-lost confidence and avoid speculation in the country’s financial system Mushayavanhu yesterday publicly declared the assets held by the apex bank.

It was revealed that the RBZ has 2,6 tonnes of gold valued at US175 million and other precious minerals as well as US$300 million cash reserves.

Analyst are  anticipating  that the new RBZ Governor, will pronounce measures that will  restore the value preservation function for the domestic currency.

During the first Cabinet meeting in February President Mnangagwa in February hinted at a structured currency.

Before his latest appointment, Mushayavanhu was group chief executive officer at First Banking Corporation (FBC) Holdings Limited, which owns FBC Bank as its subsidiary.

He is also a former president of the Bankers Association of Zimbabwe.