The Reserve Bank of Zimbabwe is the

central bank A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a centra ...

Zimbabwe Zimbabwe (), officially the Republic of Zimbabwe, is a landlocked country located in Southeast Africa, between the Zambezi and Limpopo Rivers, bordered by South Africa to the south, Botswana to the south-west, Zambia to the north, and ...

and is headquartered in the capital city Harare.

History

The bank traces its history to the Reserve Bank of Rhodesia, founded on 22 May 1964, but which succeeded the

Bank of Rhodesia and Nyasaland A bank is a financial institution that accepts deposits from the public and creates a demand deposit while simultaneously making loans. Lending activities can be directly performed by the bank or indirectly through capital markets. Because ...

(1956-1963) which had been liquidated at the collapse of the

Federation of Rhodesia and Nyasaland The Federation of Rhodesia and Nyasaland, also known as the Central African Federation or CAF, was a colonial federation that consisted of three southern African territories: the self-governing British colony of Southern Rhodesia and the B ...

in 1963. Prior to 1956, there was a Central African Currency Board from 1953, but which had been established as the Southern Rhodesia Currency Board in 1938 to provide Rhodesian currency, fully backed and bound to the British pound sterling at par face value. The local currency which Central African Currency Board was mandated to supply to

Southern Rhodesia Southern Rhodesia was a landlocked self-governing colony, self-governing British Crown colony in southern Africa, established in 1923 and consisting of British South Africa Company (BSAC) territories lying south of the Zambezi River. The reg ...

(colonial Zimbabwe),

Northern Rhodesia Northern Rhodesia was a British protectorate in south central Africa, now the independent country of Zambia. It was formed in 1911 by amalgamating the two earlier protectorates of Barotziland-North-Western Rhodesia and North-Eastern Rhodesi ...

(colonial

Zambia Zambia (), officially the Republic of Zambia, is a landlocked country at the crossroads of Central, Southern and East Africa, although it is typically referred to as being in Southern Africa at its most central point. Its neighbours are t ...

) and

Nyasaland Nyasaland () was a British protectorate located in Africa that was established in 1907 when the former British Central Africa Protectorate changed its name. Between 1953 and 1963, Nyasaland was part of the Federation of Rhodesia and Nyasala ...

(colonial

Malawi Malawi (; or aláwi Tumbuka: ''Malaŵi''), officially the Republic of Malawi, is a landlocked country in Southeastern Africa that was formerly known as Nyasaland. It is bordered by Zambia to the west, Tanzania to the north and northe ...

) had been established through the Southern Rhodesia Coinage and Currency Act of 1932. The Reserve Bank of Rhodesia (which became the Reserve Bank of Zimbabwe at independence in 1980) has continued to function, and has grown in operations and staff, through a variety of changes in sovereignty and governmental structure in Rhodesia and Zimbabwe.

Building location

For over 4 decades the RBZ operated from the Reserve Bank Building along Samora Machel Avenue (formerly Jameson Avenue) adjacent to First Street. In the late 1980s a competition was conducted to design the new building and the winning design was by Clinton & Evans and Architects, the engineer was Marjem Chatterton; they went on to design the

Reserve Bank of Malawi The Reserve Bank of Malawi is the central bank of Malawi established in the year 1964 located in Lilongwe. The current governor is Wilson Banda. The Bank is active in promoting financial inclusion policy and is a leading member of thAlliance for ...

Building as well. Construction of the new RBZ building began in 1993 and was fully completed in 1997 but was officially opened by President

Robert Mugabe Robert Gabriel Mugabe (; ; 21 February 1924 – 6 September 2019) was a Zimbabwean revolutionary and politician who served as Prime Minister of Zimbabwe from 1980 to 1987 and then as President from 1987 to 2017. He served as Leader of the ...

on May 31, 1996. The building is the tallest in Zimbabwe standing at a height of 394 feet (120 m) with 28 floors above ground.

Structure and governors

The Reserve Bank of Zimbabwe Act provides for a

board of directors A board of directors (commonly referred simply as the board) is an executive committee that jointly supervises the activities of an organization, which can be either a for-profit or a nonprofit organization such as a business, nonprofit orga ...

and a

governor A governor is an administrative leader and head of a polity or political region, ranking under the head of state and in some cases, such as governors-general, as the head of state's official representative. Depending on the type of political ...

. The governor, assisted by three deputy governors, is responsible for the day-to-day administration and operations of the bank. The current governor is John Panonetsa Mangudya. The governor and his three deputies are appointed by the president for five-year terms that may be renewed. The governor also serves as

chairman of the board The chairperson, also chairman, chairwoman or chair, is the presiding officer of an organized group such as a board, committee, or deliberative assembly. The person holding the office, who is typically elected or appointed by members of the group ...

. The board's membership includes the three deputies and a maximum of seven other non-executive directors, intended to represent key sectors of the economy.

Governors of the Reserve Bank of Rhodesia

Anthony Grafftey-Smith Anthony or Antony is a masculine given name, derived from the ''Antonii'', a '' gens'' ( Roman family name) to which Mark Antony (''Marcus Antonius'') belonged. According to Plutarch, the Antonii gens were Heracleidae, being descendants of Anto ...

, 1956-1960 * B. C. J. Richards, 1960-1964 * Noel H. Bruce, 1964-1976 *

Desmond Krogh Desmond or Desmond's may refer to: Arts and entertainment * ''Desmond'' (novel), 1792 novel by Charlotte Turner Smith * ''Desmond's'', 1990s British television sitcom Ireland * Kingdom of Desmond, medieval Irish kingdom * Earl of Desmond, Irish a ...

, 1976-1980

Governors of the Reserve Bank of Zimbabwe

The Governor is appointed by the

President of Zimbabwe The president of Zimbabwe is the head of state of Zimbabwe and head of the executive branch of the government of Zimbabwe. The president chairs the national cabinet and is the chief commanding authority of the Zimbabwe Defence Forces. The ...

for renewable five-year-terms. *

, 1980 - 1983, transitional governor from Reserve Bank of Rhodesia *

Kombo James Moyana Kombo was a kingdom and later a chieftaincy in Gambia during the colonial period. Kombo was part of the Mali Empire and gained independence after its fall, and was then ruled by the Sambou Bainunka clan. Mansa Karapha Yalli Jatta became the fi ...

, 1983 - 1993, deputy in 1981 *

Leonard Tsumba Leonard or ''Leo'' is a common English masculine given name and a surname. The given name and surname originate from the Old High German ''Leonhard'' containing the prefix ''levon'' ("lion") from the Greek Λέων ("lion") through the Latin '' ...

, 1993 - June 2003 *

Charles Chikaura Charles is a masculine given name predominantly found in English and French speaking countries. It is from the French form ''Charles'' of the Proto-Germanic name (in runic alphabet) or ''*karilaz'' (in Latin alphabet), whose meaning was " ...

, June 2003 - December 2003, acting *

Gideon Gono Gideon Gono (born 29 November 1959) is a former Governor of the Reserve Bank of Zimbabwe (RBZ), serving from 2003 to 2013, and is the former CEO of the CBZ Bank Limited. Gono became known internationally due to his connection to the hyperin ...

, 2003-2013 *

Charity Dhliwayo Charity may refer to: Giving * Charitable organization or charity, a non-profit organization whose primary objectives are philanthropy and social well-being of persons * Charity (practice), the practice of being benevolent, giving and sharing * Ch ...

, 2013-2014, acting *

John Mangudya John Panonetsa Mangudya (born 5 October 1963) is the governor of the Reserve Bank of Zimbabwe. He was appointed in March 2014 by the then Zimbabwean president, Robert Mugabe, and began his tenure as governor on 1 May that year. He succeeded Gideon ...

, 2014-

Operations

The Reserve Bank's most important role is to create and enact monetary policies. According to the bank's website, as the only producer of Zimbabwe's bank notes and coins, it regulates the amount of money in circulation. However, since a range of foreign currencies is currently in use for domestic transactions, the bank's ability to control money supply is limited. The Reserve Bank also looks after the country's gold, as well as purchase and refine precious minerals like diamonds, gold and silver through its subsidiary Fidelity Printers and Refinery. The bank serves as an advisor to the government, providing the government with daily banking services. It is also active in promoting

financial inclusion Financial inclusion is defined as the availability and equality of opportunities to access financial services. It refers to a process by which individuals and businesses can access appropriate, affordable, and timely financial products and service ...

policy and is a member of the

Alliance for Financial Inclusion The Alliance for Financial Inclusion, or AFI, is a policy leadership alliance owned and led by member central banks and financial regulatory institutions with the common objective of advancing financial inclusion at the country, regional and inte ...

Relevancy

Due to the unstable economic conditions and failure to control inflation (2008), economists have suggested that the Reserve Bank be abolished. Some economists have suggested that the Reserve Bank of Zimbabwe be reformed. Legislation in 2008 was debated in the lower house of the Zimbabwean parliament with a view to limiting the so-called quasi-fiscal activities of the Reserve Bank.

References

External links

Official site: Reserve Bank of Zimbabwe
{{Authority control

Economy of Zimbabwe Banks established in 1956 1956 establishments in the Federation of Rhodesia and Nyasaland