"Zimbabwe\u2019s new Central Bank Governor vows to regain investor confidence"

" Zimbabwe\u2019s new Central Bank Governor vows to regain investor confidence \r\n\r\nZimbabwe\u2019s new central bank governor vowed to restore confidence in the institution that\u2019s repeatedly failed to stabilize prices and the nation\u2019s currency.\r\n\r\nThe Reserve Bank of Zimbabwe is rolling out a \u2018Back to Basics\u2019 plan that will initially focus on consolidating the introduction of the nation\u2019s new national currency \u2014 the ZiG, John Mushayavanhu said in a circular to staff. It will also seek a \u201cparadigm shift\u201d in culture at the bank to rebuild its credibility and relevance, he said.\r\n\r\n\u201cThe market has lost confidence and trust in the credibility and impact of the central bank\u2019s policies over the years, and this calls for a focused re-orientation and change in the way we do things in pursuit of our statutory mandate,\u201d Mushayavanhu said in the note.\r\n\r\nMushayavanhu\u2019s first policy measure after taking over as governor was the introduction of the ZiG \u2014 short for Zimbabwe Gold \u2014 on April 5. The new unit backed by gold and a basket of foreign currencies is the southern African nation\u2019s sixth attempt to create a functioning local currency since 2008. A single ZiG is worth about 7 US cents, the price of a milligram of gold.\r\n\r\nThe currency has strengthened 1.5% since its introduction and traded at 13.36 per US dollar on Tuesday, according to central bank data.\r\n\r\nDubbed by commercial bankers as \u201cJohn the Second\u201d after taking over from former Governor John Mangudya last month, Mushayavanhu said other reforms planned by the central bank include \u201cidentifying and plugging leakages and restructuring the Reserve Bank\u2019s balance sheet from short-term pressures likely to undermine the efficacy of our policies.\u201d\r\n\r\nThe bank will also seek to collate and disseminate credible data and appoint a panel to monitor the effectiveness of monetary policy. Along with the new currency, Mushayavanhu also introduced a new interest rate on April 5 \u2014 one set at 20%, compared with 130% previously, which was the highest central bank rate in the world.\r\n\r\nThe ZiG replaced the Zimbabwean dollar, which lost four-fifths of its value against the greenback this year before being replaced, fanning inflation and evoking bitter memories for citizens of the days of hyperinflation.\r\n\r\nZimbabwe stopped publishing local currency inflation data last year, after adopting a measure that better reflects the dominant role the US dollar plays in the economy. Under the measure inflation quickened to a seven-month high of 55.3% in March."

"Zimbabwe\u2019s new Central Bank Governor vows to regain investor confidence"

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