Maravi

(HERALD) Gono gets new term

Gono gets new term
Deputy Business Editor Jeffrey Gogo

DR Gideon Gono has been re-appointed Reserve Bank of Zimbabwe Governor for another five-year term, Finance Minister Dr Samuel Mumbengegwi announced yesterday. The appointment, sanctioned by President Mugabe, is effective December 1 and ends on November 30, 2013. Dr Gono became RBZ Governor in the first week of December 2003 and his current term expires on Sunday.

"I congratulate Dr Gideon Gono on his re-appointment," Dr Mumbengegwi said. Dr Gono refused to comment on the renewal of his term. "I think the statement from the Minister of Finance is enough for the time being," he said.

He is the fourth head of the central bank since Independence in 1980.

Dr D.C. Krogh was Governor between 1976 and 1983 and was replaced by Dr Kombo Moyana (1983-1993). Dr Leonard Tsumba was in charge between 1993 and 2003 when Dr Gono took over.

At the time of his appointment, Dr Gono inherited a weakening currency, runaway inflation, unattractive interest rates and rampant indiscipline within the financial services sector.

He managed, within a few months, to briefly stabilise inflation during the first half of 2004, returned sanity to the banking sector and tried to reform the foreign exchange rate to spur export performance.

Dr Gono has also played a key role in building broad national consensus around formulation and co-operative implementation of monetary, fiscal and structural policies, including the inception of a comprehensive framework to turn around and privatise public sector enterprises.

During his first term, the Reserve Bank has been key in funding crucial national development programmes, among them the four phases of the Farm Mechanisation Programme.

Dr Gono’s biggest enemy remains hyperinflation, which catapulted to 231 million percent at the end July, followed by stabilising foreign exchange rates.

Dr Gono, who is in his early 50s, is married to Helen and the couple has four children, two boys and twin girls.

The Reserve Bank is responsible for crafting Zimbabwe’s monetary policy. Its primary responsibility is to maintain the stability of the national currency and money supply but more active duties include controlling subsidised-loan interest rates, and acting as a lender of last resort to the banking sector during times of financial crisis.

The RBZ traces its roots to the Bank of Rhodesia and Nyasaland, created in March 1956 as a central bank for the Federation of Rhodesia and Nyasaland. The Reserve Bank was the successor to the Central Currency Board, which had the sole right to issue currency.

The bank operates under the RBZ Act, Chapter 22: 15 of 1964. The Act provides for the board of directors and the post of Governor who is responsible for the day-to-day administration and operations of the bank. Three deputy governors assist the Governor.

The Governor and his three deputies are appointed by the President for renewable five-year terms. The Governor chairs the board of directors, and its membership includes three deputy governors and a maximum of seven other non-executive directors appointed by the President and representing key sectors of the economy.

Labels: GIDEON GONO, RBZ

posted by MrK @ 10:25 PM