Cabinet Approves RBZ Act Changes – Biti

HARARE – Cabinet has agreed to make changes to the Reserve Bank of Zimbabwe (RBZ) Act, Finance Minister Tendai Biti said Thursday.\r\n

"Cabinet has agreed to the fundamental amendments to the RBZ Act. As you know the International Monetary Fund (IMF) is still around. They will make certain recommendations to the ministry (of finance) and we will take them to cabinet," Biti told journalists.
"Nothing will distract us from that mandate. Our biggest problem is politics as they are still outstanding issues on the Global Political Agreement (GPA. The amendments to the RBZ Act are aimed at restricting the central bank to its core business.
The inclusive government led by President Robert Mugabe and Prime Minister Morgan Tsvangirai, has been failing to agree on the appointment of the central bank governor and Attorney General (AG).
Mugabe last week said RBZ governor Gideon Gono was not going anywhere while the Movement for Democratic Change (MDC) has remained adamant that a new candidate should take over from Gono.
Gono stands accused by his critics of fuelling inflation through excessive money printing which led to inflation reaching more than 231 million percent.
Justice Minister Patrick Chinamasa said Gono must be pardoned for actions committed before the inclusive government was set up as Mugabe and his cabinet approved them.
Gono embarked on serious quasi-fiscal operations during his tenure in his first term rendering the finance ministry position irrelevant.
The MDC has referred the matter of Gono and the Attorney general’s unilateral appointments by Mugabe to the Southern African Development Community (SADC) and African Union for arbitration, as they are the guarantors of the GPA.