Nov 2009 Vol 14, Business , Financial and Property Indaba
Zimbabwe Parliament Passes Bill to Reform Central Bank
Despite lingering 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 by chief whip Innocent Gonese of the MDC grouping of Prime Minister Morgan Tsvangirai and Zanu-PF lawmakers Paul Mangwana and Mabel Chinomona.
Readings of the 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 in early 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 central bank. Sources said the bill could ease tensions over Gono. But some economists caution that the finance minister will acquire considerable power at the central bank, possibly compromising its independence on monetary policy.
