IN what seems to be a vote of confidence in his team at Treasury, President Emmerson Mnangagwa has extended Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya’s term for another five years.
In a statement, Chief Secretary to the President and Cabinet, Misheck Sibanda Friday said the extension is with effect from 1 May, 2019.
“The Chief Secretary to the President and Cabinet Dr Misheck J M Sibanda has announced the extension of the term of office of Reserve Bank of Zimbabwe Governor, Dr John Panonetsa Mangudya by His Excellency the President of the Republic of Zimbabwe, Cde ED Mnangagwa acting in Terms of Section of the Reserve Bank Act Chapter 22:15. The extension takes effect from 1st May 2019 for another five years,” said the statement.
Mangudya took over in 2014 from Gideon Gono.
He served as chief executive officer of local financial group CBZ Holdings from 2012 until his appointment at the Apex Bank.
The controversial central bank boss is well known for introducing the unpopular Bond Note in 2016 against public outcry over the resurrection of the local currency.
Mangudya declared if the surrogate currency does not remain at par with the US dollar, he was going to resign.
The bond note has since been rechristened the RTGS$ in February this year by Mangudya who has declared it as full legal tender.
Initially, the bond note was backed by a $200 million Africa Export Import Bank (AFREXIM) facility.
Its coming was met with protests especially in Harare and Bulawayo with some citizens, among them former Vice President Joice Mujuru approaching the courts seeking an order to stop the introduction of the notes.
Mnangagwa’s extension of Mangudya’s contract may surprise many after reports claimed there was bad blood between the Governor and Finance Minister Mthuli Ncube as well as Treasury secretary George Guvamatanga.
It was expected that Mnangagwa would appoint a person more acceptable to Ncube to allow for a smooth working relationship after reports of a clash early this year. The two however denied any bad blood.
Mangudya is a holder of Doctorate in Philosophy (PHD) in Business Administration from Washington International University, Bachelor of Science in Economics and a Master of Science, Degree in Economics from the University of Zimbabwe.