THE opposition Movement for Democratic Change has expressed reservations about Gideon Gono’s effectiveness as new Reserve Bank governor given his close links to Zanu PF.
The party’s finance spokesman Tapiwa Mashakada last week said the RBZ needed minimum political interference to function properly.
“Our concern stems from the premise that the central bank should be given the autonomy to make good monetary policies that realise the goals of price stability as well as the effective regulation and supervision of the financial sector,” Mashakada said.
Mashakada said Gono’s links with Zanu PF compromised his position.
“We wonder how independent Gideon Gono will be especially knowing his strong links with Zanu PF as one of its key financial deals broker. We consider his appointment as simply political and strategic for Zanu PF,” he said.
Mashakada said the appointment might herald the stepping up of political interference in the affairs of the central bank which has provided a window for excessive government borrowing and financial signorage.
Mashakada called for an overhaul of the Reserve Bank Act to minimise the influence of the executive in the appointment of the governor and the board. This, he said, would ensure that the RBZ became a truly independent custodian of monetary policy.