John Mangudya

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Mangudya addressing a financial meeting in Harare in 2016

John Panonetsa Mangudya (born 5 October 1963)[1] is the governor of the Reserve Bank of Zimbabwe.[2][3] He was appointed in March 2014 by the Zimbabwean president and began his tenure as governor on 1 May that year.[4] He succeeded Dr Gideon Gono as the governor of Zimbabwe's central bank and became the nation's 6th substantial exchequer.

Education[edit]

Mangudya earned bachelor's and master's degree in economics from the University of Zimbabwe, where he won several book prizes for his academic achievements. He also has a PhD in Economics from Washington International University.[5] His PhD qualification however, has been questioned by critics who have noted that it was obtained from an unaccredited institution in the United States.[6][7]

Reserve Bank of Zimbabwe Governorship[edit]

John Mangudya started work as RBZ governor on 1 May 2014 after being appointed into office by Robert Mugabe.[8] He took over from Dr Charity Dhliwayo who had been acting since November 2013 following Dr Gideon Gono's retirement. In May 2019, his expired contract was renewed for a further 5 years by Emmerson Mnangagwa. [9]

Bond Notes and Coins[edit]

A few months after assuming office, Mangudya introduced bond notes at that time stated not to be a currency, but a legal tender pegged to be with the same value as the US Dollar. The coins were introduced to remedy a lack of small change.[10] In November 2016, Mangudya also introduced bond notes, pegged at the same value as the US Dollar again.[11] Bond notes and coins later started losing value against the US dollar and even though the banks and formal institutions kept the rate at 1:1, the case was not the same on the parallel market (black market). Bond notes were introduced to easy cash shortages in the country.

Use of Plastic Money[edit]

John Mangudya is also the one who encouraged use of plastic money (bank cards, mobile banking and internet banking) in Zimbabwe following the cash shortages that were heavily affecting the country. To do this he lowered charges on using electronic means to settle transactions.

RTGS Dollar[edit]

The bond notes and coins continued losing value against the US dollar on the parallel market and this led Mangudya to the introduce a new currency, the RTGS Dollar in February 2019. The RTGS dollar was introduced to bring sanity in the foreign currency market, promote diaspora remittances, protect foreign investments and exports. [12]

Results of Policies[edit]

Negative Implications[edit]

  • cash shortages
  • fuel shortages
  • drugs shortages
  • shortages in industry
  • load shedding
  • inflation
  • worsening forex shortages
  • food shortages

Positive Implications[edit]

  • availability of change for transactions
  • protection of diaspora remittances

Career Profile[edit]

Banking Career [13]
Period Company/Organisation Position Held
1986-1996 Reserve Bank of Zimbabwe Economist
1996-1999 Afrixembank Southern Africa Regional MAnager
2000-2004 CBZ General Manager
2004-2006 CBZ Executive Director
2006-2012 CBZ Managing Director
20012- March 2014 CBZ Group CEO
March 2014 - Present Reserve Bank of Zimbabwe Governor
Boards [13]
Organisation Position
Industrial Development Corporation of Zimbabwe Chairman
Agricultural Marketing Authority of Zimbabwe Chairman
Afreximbank Board Member
Africa University Board Member

Personal Life[edit]

Mangudya is married to Tapiwa Mangudya and they have three children. He is a member of the United Methodist Church.[13]

References[edit]

  1. ^ "John Panonetsa Mangudya | Who's Who Profile". Africa Confidential. Retrieved 2016-09-18.
  2. ^ John Panonetsa Mangudya. "John Panonetsa Mangudya: Executive Profile & Biography - Businessweek". Bloomberg.com. Retrieved 2016-09-18.
  3. ^ "John Mangudya". Pindula.co.zw. Retrieved 2016-09-18.
  4. ^ "Mangudya appointment as RBZ boss welcome | The Chronicle". www.chronicle.co.zw. Retrieved 2017-08-27.
  5. ^ "Washington International University". www.washint.edu. Retrieved 2017-08-27.
  6. ^ "RBZ governor Mangudya's PhD degree sets tongues wagging". Newsday.co.zw. 2014-03-25. Retrieved 2016-09-18.
  7. ^ "Woman files lawsuit to challenge RBZ Governor's Doctorate – The Zimbabwe Mail". Thezimbabwemail.com. Retrieved 2016-09-18.
  8. ^ Herald, The. "New RBZ chief assumes office". The Herald. Retrieved 2019-05-20.
  9. ^ "Zimbabwe Extends Central Bank Governor's Term by Another 5 Years". VOA. Retrieved 2019-05-20.
  10. ^ "Zimbabweans suspicious of new 'bond coins'". TimesLIVE. Retrieved 2019-05-20.
  11. ^ Crabtree, Justina (2016-11-28). "Zimbabwe's issuing new 'bond notes' to avoid a cash crunch". CNBC. Retrieved 2019-05-20.
  12. ^ "Zimbabwe's RTGS dollars explained | IOL Business Report". www.iol.co.za. Retrieved 2019-05-20.
  13. ^ a b c Herald, The. "New RBZ chief assumes office". The Herald. Retrieved 2019-05-20.