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Saturday, 11 February 2012
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zimbabwe parliament passes bill to reform central bank

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Wednesday, 18 November 2009

Despitelingering tensions in the Harare government in the wake of the recent crisis,parliament Wednesday passed an important piece of legislation for the reform of the Reserve Bank of Zimbabwe based on a deal struck by the majority Movement for Democratic Change and Zanu-PF.

Political sources said the deal was brokered bychief whip Innocent Gonese of the MDC grouping of Prime Minister Morgan Tsvangirai and Zanu-PF lawmakers Paul Mangwana and Mabel Chinomona.

Readings ofthe bill were halted Tuesday when Zanu-PF insisted on certain amendments. But Wednesday it was fast-tracked to a vote and is set for debate in the senate inearly December.

Political sources called the bill originated by finance minister Tendai Biti is a major blow to his rival, central bank governor Gideon Gono.

The Tsvangirai MDC has long been seeking Gono’s replacement at the centralbank. Sources said the bill could ease tensions over Gono. But some economistscaution that the finance minister will acquire considerable power at thecentral bank, possibly compromising its independence on monetary policy.

MDCwhip Gonese told reporter Blessing Zulu that the last-minute amendmentsincluded language on RBZ borrowing powers.

Economist Prosper Chitambara saysmost countries aim to protect central bank independence.

More reports from VOA's Studio 7 for Zimbabwe...


Wednesday, 18 November 2009

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