WASHINGTON DC —
New central bank governor John Mangudya failed to appear before a parliamentary committee on Monday, leaving some lawmakers furious as the Zimbabwe economy continues to decline.
Finance and budget committee member, Willas Madzimure, says Mangudya apologized to the committee saying he is currently attending an international event.
Madzimure says most committee members were upset by Mangudya’s apology as the governor was given at least a month to prepare for the hearing meant to discuss issues affecting the country’s economy.
The economy is currently facing liquidity challenges, unprecedented deflation and lack of foreign direct investment.
Madzimure says the governor was expected to address some of these issues.
Zanu PF lawmakers dismissed Madzimure’s remarks saying Mangudya had other commitments and is set to appear before the committee next month.
Observers say the governor plays a critical role in stabilizing the economy though the central bank is not currently playing its major role of lender of last resort.
Bulawayo-based businessman, Bulisani Ncube, believes that the Reserve Bank of Zimbabwe is still in a position to tackle the country’s economic challenges despite its shortcomings.
Mangudya was not available for comment as his mobile phone was not reachable.
He said recently the Reserve Bank of Zimbabwe will strive to tackle serious challenges facing the Zimbabwe economy including low aggregate domestic demand, deterioration of the balance of payments, banking sector vulnerabilities and depressed industry capacity utilization.
Mangudya noted that lack of liquidity and its limited circulation within the economy remains the biggest immediate challenge that the Zimbabwe economy is facing.
He said at the epicenter of the liquidity crunch is the country’s banking sector, which has been operating without a formal interbank market and a lender of last resort since the introduction of the multiple currency system in 2009.