The Reserve Bank of Zimbabwe Bank of Zimbabwe (RBZ) just announced that it dissolved the Monetary Policy Committee (MPC) with effect from the 31st of January 2021. News of its dissolution followed the announcement that one of its members Eddie Cross quit citing fatigue and frustration.
So who was in the Monetary Policy Committee?
Back in 2019, Minister for Finance Mthuli Ncube appointed the Monetary Policy Committee. Its mandate was to help stabilize the Zimbabwean economy and it was comprised of nine members and was chaired by RBZ governor Dr John Mangudya. The rest of the committee was made up of:
- Dr Kupukile Mlambo (RBZ Deputy Governor)
- Dr Jesiman Chipika (RBZ Deputy Governor)
- Kumbirai Katsande (Businessman)
- Professor Ashok Chakravarti (Ex-government advisor and Economist)
- Doug Munatsi (former ABC Holdings CEO)
- Eddie Cross (Economist)
- Professor Theresa Moyo
- Marjorie Ngwenya
Although the one that comes up on the RBZ’s website only lists Mangudya and his two deputies and Professor Ashok Chakravarti. According to Reuters, two members Douglas Munatsi and Kumbarai Katsanade took up roles at Old Mutual and the Zimbabwe Development Agency respectively.
As previously mentioned the role of the MPC was to bring stability to the Zimbabwean economy. It was also tasked with:
- Determining the Monetary Policy of the country
- Setting limits on market operations
- Determining interest rates in line with the government’s economic policies.
- Crafting regulations
The tweet by the RBZ said that the Minister for Finance, Mthuli Ncube will announce a new MPC soon and it will be interesting to see who is selected. And if the new one will follow closely with what the last one set out or chart its own course.
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