The Reserve Bank of Zimbabwe is the central bank of Zimbabwe and is headquartered in Harare.

History

The bank traces its history to the Reserve Bank of Rhodesia, founded on 22 May 1964, but which succeeded the Bank of Rhodesia and Nyasaland (1956-1963) which had been liquidated at the collapse of the Federation of Rhodesia and Nyasaland in 1963.[3] Prior to 1956, there was a Central African Currency Board from 1953, but which had been established as the Southern Rhodesia Currency Board in 1938 to provide Rhodesian currency, fully backed and bound to the British pound sterling at par face value. The local currency which Central African Currency Board was mandated to supply to Southern Rhodesia (colonial Zimbabwe), Northern Rhodesia (colonial Zambia) and Nyasaland (colonial Malawi) had been established through the Southern Rhodesia Coinage and Currency Act of 1932. The Reserve Bank of Rhodesia (which became the Reserve Bank of Zimbabwe at independence in 1980) has continued to function, and has grown in operations and staff, through a variety of changes in sovereignty and governmental structure in Rhodesia and Zimbabwe.

Building location

For over 4 decades the RBZ operated from the Reserve Bank Building along Samora Machel Avenue (formerly Jameson Avenue) adjacent to First Street. In the late 1980s a competition was conducted to design the new building and the winning design was by Clinton & Evans and Architects, the engineer was Marjem Chatterton; they went on to design the Reserve Bank of Malawi Building as well. Construction of the new RBZ building began in 1993 and was fully completed in 1997, but was officially opened by President Robert Mugabe on May 31, 1996. The building is the tallest in Zimbabwe[citation needed] standing at a height of 394 feet (120 m) with 28 floors above ground.

Structure and governors

The Reserve Bank of Zimbabwe Act provides for a board of directors and a governor. The governor, assisted by two deputy governors, is responsible for the day-to-day administration and operations of the bank. The current governor is John Mushayavanhu.[4]

The governor and his two deputies are appointed by the president for five-year terms that may be renewed. The governor also serves as chairman of the board. The board's membership includes the three deputies and a maximum of seven other non-executive directors, intended to represent key sectors of the economy.

Governors of the Reserve Bank of Rhodesia

Governors of the Reserve Bank of Zimbabwe

The Governor is appointed by the President of Zimbabwe for two renewable five-year-terms.

Key people

  1. Dr. Jesimen T. Chipika, Deputy Governor
  2. Dr. Innocent Matshe, Deputy Governor  
  3. Dr. Morris B. Mpofu, Executive Assistant to the Governor
  4. Dr. Nebson Mupunga, Director - Economic Research, Modelling & Policy.
  5. Mr. Azvinandaa Saburi, Director - Bank Operations and Currency Management
  6. Mr. Farai Masendu, Director - Exchange Control Inspectorate and Compliance Enforcement
  7. Mrs. Virginia Sithole, Bank Secretary and General Counsel  
  8. Mr. Philip T. Madamombe, Director - Bank Supervision Surveillance and Financial Sector
  9. Mr. Cleopas Chiketa, Director - Human Resources
  10. Mr. N. Nyemudzo, Director - Finance, Assets and Stores Management
  11. Mr. C. Haparari, Director - ICT, Innovation Hub and Fintech
  12. Mr. J. Mverecha, Director - Policy and Strategy
  13. Dr. T. Chhitauro, Director - Capital Flows, Administration, Accounting & Management
  14. Mrs. M. Harry, Director-- Coporate Affairs
  15. Mr. W. Nakunyada, Director - External Affairs and Stakeholder Engagement

Operations

Headquarters of the Reserve Bank in Harare

The Reserve Bank's most important role is to create and enact monetary policies. According to the bank's website, as the only producer of Zimbabwe's bank notes and coins, it regulates the amount of money in circulation. However, since a range of foreign currencies is currently in use for domestic transactions, the bank's ability to control money supply is limited. The Reserve Bank also looks after the country's gold, as well as purchase and refine precious minerals like diamonds, gold and silver through its subsidiary Fidelity Printers and Refinery. The bank serves as an advisor to the government, providing the government with daily banking services. It is also active in promoting financial inclusion policy and is a member of the Alliance for Financial Inclusion.[10]

Farm Mechanisation Programme

In 2007 and 2008, the Reserve Bank of Zimbabwe ran a programme which was stated to be designed to support commercial agriculture and the 'new' farmers that had resulted from the Fast-track land reform. The plan was to purchase agricultural equipment and distribute it to farmers by bank loans. It was called the Farm Mechanisation Programme. The stated purpose was to enhance productivity on the farms through mechanisation. The equipment included combine harvesters, tractors, disc ploughs, planters, harrows and generators. The bank established a US$200 million fund for the programme.[11]

Unfortunately the main beneficiaries of the program were "well to do people (government Ministers, senior government officials, Judges among others),"[12] people who had received large chunks of land under fast-track land reform. Equally unfortunate, many of the beneficiaries did not repay the loans. Rather than other remedies, the RBZ chose to seek a legislative solution, and eventually in 2015 the Reserve Bank of Zimbabwe Debt Assumption Act was passed where the government took over the debts of the RBZ, including the Farm Mechanisation Programme debts.[11] The government later claimed that they were not loans but were subsidies.[13]

Following in 2022 the government initiated a second RBZ Farm Mechanisation Programme called the Belarus programme as the equipment was provided from Belarus. The programme was in multiple phases, US$51 million in phase one, and US$52 million in phase two, with additional phases to come. In phase one 474 tractors, 60 combine harvesters, 210 planters and five lowbed trucks were distributed under loan agreements.[14] The government indicated that the majority (98%) of those loans were repaid by the farmers.[15]

Relevancy

Due to the unstable economic conditions and failure to control inflation (2008), economists[who?] have suggested that the Reserve Bank be abolished. Some economists[who?] have suggested that the Reserve Bank of Zimbabwe be reformed. Legislation in 2008 was debated in the lower house of the Zimbabwean parliament with a view to limiting the so-called quasi-fiscal activities of the Reserve Bank.[16]

See also

References

  1. ^ Weidner, Jan (2017). "The Organisation and Structure of Central Banks" (PDF). Katalog der Deutschen Nationalbibliothek.
  2. ^ https://www.rbz.co.zw/documents/mps/2025/MPS_At_A_Glance_February_06_2025_1.pdf. {{cite web}}: Missing or empty |title= (help)
  3. ^ a b "The Bankers' Almanac and Year Book". T. Skinner. April 28, 1966 – via Google Books.
  4. ^ "CBZ boss named new RBZ governor". Newzimbabwe.com. Archived from the original on 2016-09-19. Retrieved 2016-09-18.
  5. ^ a b c d e f g h Kararach, George; Otieno, Raphael O. (February 11, 2016). Economic Management in a Hyperinflationary Environment: The Political Economy of Zimbabwe, 1980-2008. Oxford University Press. ISBN 9780191064708 – via Google Books.
  6. ^ a b c Central Banking Directory. Central Banking Publications. April 28, 1993. ISBN 9780951790311 – via Google Books.
  7. ^ Langa, Veneranda (27 May 2019). "Kombo Moyana pens 'historic book'". Zimbabwe Situation. Archived from the original on 27 May 2019.
  8. ^ "Zimbabwe's central bank chief resigns". Central Banking. 2 June 2003.
  9. ^ "Mushayavanhu appointed new RBZ Governor – The Herald". www.herald.co.zw. Retrieved 2023-12-20.
  10. ^ "AFI members". AFI Global. 2011-10-10. Archived from the original on 2012-02-20. Retrieved 2012-02-23.
  11. ^ a b Magaisa, Alex T. (18 July 2020). "Beneficiaries of the RBZ Farm Mechanisation Scheme". New Zimbabwe. Archived from the original on 20 July 2020.
  12. ^ "Revisiting the 2007/8 Farm Mechanisation Programme in Zimbabwe" (PDF). Weekend Digest. Transparency International Zimbabwe. 24 July 2020. Archived (PDF) from the original on 9 January 2025.
  13. ^ "Gono Confronts Magaisa Over RBZ Farm Mechanisation Loot, Claims Programme Was Clean". New Zimbabwe. 19 July 2020. Archived from the original on 7 February 2023.
  14. ^ Zinyuke, Rumbidzayi (31 January 2023). "Second phase of Agriculture Mechanisation Programme launched". The Herald. Archived from the original on 1 February 2023. {{cite news}}: Text "url-status-live" ignored (help)
  15. ^ Tome, Michael (28 May 2023). "Farmers repay bulk of mechanisation loans". The Sunday Mail. Archived from the original on 28 May 2023.
  16. ^ "New Report Recommends Zimbabwe Abolish Its Central Reserve Bank". VoaNews.com. 2008-06-27. Retrieved 2016-10-06.

17°49′33″S 31°02′57″E / 17.8258°S 31.0491°E / -17.8258; 31.0491

Allikas: http://en.wikipedia.org/wiki/National_Bank_of_Zimbabwe
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