Gideon Gono

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The RBZ printed large quantities of money to keep the economy afloat against the backdrop of economic sanctions placed upon the Zimbabwe since 2000. This went against the advice of global economists, but with full support from President Robert Mugabe. As predicted by the textbook quantity theory of money, this practice devalued the Zimbabwean dollar and caused hyperinflation.

The RBZ demonetized old bank notes on 1 August 2006 and introduced a new currency. Each new Zimbabwe dollar was worth 1000 old Zimbabwe dollars. [15] The highest denominations for the new currency were 1, 10, and 100 thousand revalued dollars. A year later on 1 August 2007, he authorized a 200 thousand dollar denomination. This marked the start of a series of new denominations issued in rapid succession, including 250, 500, and 750 thousand dollars (20 December 2007); 1, 5, and 10 million dollars (16 January 2008); 25 and 50 million dollars (4 April 2008); 100 and 250 million dollars (5 May 2008); 500 million and 5, 25, and 50 billion dollars (20 May 2008); and 100 billion dollars (21 July 2008). From the time of currency revaluation to the beginning of June 2008 the money supply in the country increased from billion to more than quadrillion, or a 20,000,000 fold increase.

Gono denied media claims that he had opposed price cuts that the government instituted to arrest inflation. As time went by, it became apparent that the RBZ had instituted price cuts that saw bare shelves in shops and many businesses closing. [16] He sent in the police to arrest businessmen for failing to reduce their prices. On one occasion, he personally visited shop owners in Harare to demand they lower prices. [17] Despite these efforts, inflation in Zimbabwe remains the world's highest. [18] [19] (Note: after dollarization in 2009, Zimbabwe's inflation rate has become deflation since 2014. [20] )

Critics have noted that most of Gono's monetary policy statements in the past have had biblical references. Notably, he usually ends in policy statements to the Parliament of Zimbabwe thus: "In the Lord's hands, I commit this Monetary Policy Framework for our economic turnaround." [21]

Banks and currency exchange

A number of banks that were skirting banking laws had their operating licenses cancelled and/or were placed under curatorship. [22] [23] [24] Critics blame Gono for closing 16 money transfer agencies.

Agriculture sector

With the shortages of inputs in the agriculture the RBZ came to the forefront to try to bail the sector out by helping with fertilizer and machinery procurement.

Backed by vice president Joyce Mujuru, Gono has several times called for an end to the farm invasions sanctioned by the ZANU-PF party, as these destroy the Zimbabwean economy. [25] Gono's criticism of farm takeovers is in sharp contrast to statements made by other ministers, including Lands Minister Didymus Mutasa.

In an interview with the state-controlled The Herald newspaper, he said, "I have openly condemned such retrogressive acts as destruction of horticultural greenhouses, decimation of tobacco barns, institution of fresh farm invasions". [26] "There are too many subdivisions among us, too many contradictions, too much infighting among ourselves, incredible suspicion and mistrust of one another," Gono said.

Gono admitted that his efforts to rescue and improve the economy of Zimbabwe were being thwarted and risked failure. [27] Gono said there were several factors that were outside the central bank's control, which made it difficult to reign in inflation.

"Some of those factors are within the governor's control and influence while others such as politics, sanctions, droughts, under-utilisation of farms, disruptions at those farms, rampant corruption, indiscipline, law and order are factors outside the governor's control," he said in an interview with The Herald newspaper. [28] He has also blamed the failure of the economy on sanctions imposed on the country, a charge critics dispute. [29]

Critics allege that Gono has kept his job as the governor mainly through Mugabe's patronage saying Mugabe has not only shielded Gono from critics, but has commended him in his activities as governor despite the extreme deterioration of the Zimbabwean economy. [30] He had been Mugabe's banker for a long period before becoming governor of the RBZ. [31]

Personal life

Like many of Mugabe's inner circle, Gono allegedly owns several farms (one of which is in Norton). [32] However, unlike others, he is said to have bought and paid for it in the late 1990s before the land redistribution program in which other farms were confiscated from localised white farmers.

In November 2008, Gono published a book titled Zimbabwe's Casino Economy: Extra-ordinary Measures for Extra-ordinary Challenges describing the post-colonial economy of Zimbabwe particularly during the first five years (2003–2008) of his term as Governor of the Reserve Bank of Zimbabwe (RBZ).

On 24 October 2010, the South-African newspaper Sunday Times ran a story falsely claiming that he had an affair with Amai Grace Mugabe, the wife of the late President Robert Mugabe. It was later reported that the story could have been made up as a part of internal fighting inside the ruling party or the RBZ.

Personal sanctions

Gono is banned from traveling to the United States because of his then influential position in government-owned institutions in Zimbabwe, namely the Commercial Bank of Zimbabwe where he was the CEO and subsequently, the Central Bank where he was the Governor of the Reserve Bank of Zimbabwe. He was added to and subsequently removed from the EU's list of individuals subject to personal sanctions and the ban on travel to the EU was lifted in 2013 after he retired from Government service. He however is still on the US sanctions list. He had no assets frozen by the EU sanctions. [33] [34]

Awards

In 2009, Gono was awarded the Ig Nobel Prize in Mathematics "for giving people a simple way to deal with a wide range of numbers" by having his bank print notes with denominations ranging from one cent to one hundred trillion dollars. [35]

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References

  1. ↑ "Goodbye says RBZ Chief Gideon Gono" Archived 6 January 2014 at the Wayback Machine , New Zimbabwe, 30 November 2013
  2. ↑ ries/200706240121.html "Zimbabwe: 'Mugabe downfall within six months'", Zimbabwe Standard, 24 June 2007
  3. ↑ "Gideon Gono, Mugabe's new political tool" Archived 30 October 2005 at the Wayback Machine , Kubatana.net, 19 August 2005 (accessed 2 August 2008)
  4. ↑ "Welcome to Zimbabwe". 5 April 2010.
  5. ↑ Abrahams, Marc (13 October 2009). "Improbable research: the hundred trillion dollar book". The Guardian. Retrieved 6 January 2022.
  6. ↑ "Probe IGP's 'Fake' doctorate degree - Academics". GhanaWeb. 28 October 2016. Retrieved 28 November 2023.
  7. ↑ quist (3 August 2016). "Gifty Anti, IGP, Hassan Ayariga and others indicted in fake doctorate degree scandal". Pulse Ghana. Retrieved 28 November 2023.
  8. ↑ "Zimbabwe extends bank chief's tenure", AFP, 26 November 2008.
  9. ↑ "TO DR. GIDEON GONO: The Truth", The Zimbabwe Gazette, 4 February 2008
  10. ↑ Price Cuts Shortages in agriculture (accessed 2 August 2008)
  11. ↑ "Roundup: Zimbabwe fights fuel crisis" [ dead link ], Xinhua News Agency, 31 May 2006 (accessed 2 August 2008)
  12. ↑ "Zimbabwe imports wheat". Television New Zealand . 1 September 2007. Archived from the original on 16 May 2011. Retrieved 1 October 2011.
  13. ↑ Monetary Policy, AllAfrica, 7 August 2006 (subscription required) (accessed 2 August 2008)
  14. ↑ Alice in Wonderland, AllAfrica, 1 February 2007 (subscription required)
  15. ↑ Slashes Zeros, AllAfrica, 1 August 2006 (subscription required) (accessed 2 August 2008)
  16. ↑ "Gideon Gono: 'I'm not against price war'. (ZIMBABWE ECONOMY: The real story)", New African, 1 August 2007
  17. ↑ No more mr. nice guy, AllAfrica, 14 August 2006 (subscription required) (accessed 2 August 2008)
  18. ↑ "Zimbabwe inflation still soaring", USA Today, 18 October 2007 (accessed 2 August 2008)
  19. ↑ "Zimbabwe: November Annual Inflation Rises to 26 470,8pc –CSO", The Herald, 4 February 2008 (accessed 2 August 2008)
  20. ↑ "From Hyperinflation to Deflation, No End to Zimbabwe's Decline" bloomberg.com, accessed 26 December 2016
  21. ↑ "Gideon Gono “… in sheep’s clothing” : The Role of the RBZ Governor in Murambatsvina" Archived 12 November 2007 at the Wayback Machine , Sokwanele, 8 June 2005 (accessed 2 August 2008)
  22. ↑ Gono Under fire, AllAfrica, 7 July 2006 (subscription required) (accessed 2 August 2008)
  23. ↑ "Central bank shuts down money transfer agencies in Zimbabwe", International Herald Tribune, 10 October 2006 (accessed 2 August 2008)
  24. ↑ "Gono shuts down money transfer agencies" Archived 22 December 2007 at the Wayback Machine , Independent Online, 10 October 2006 (accessed 2 August 2008)
  25. ↑ "Gono vows to reduce soaring inflation rate - IOL".
  26. ↑ "Friends want me dead, claims Zim bank chief", Independent Online, 23 October 2006
  27. ↑ "Zimbabwe's central bank chief admits failure" Archived 21 February 2008 at the Wayback Machine , New Zimbabwe.com, 3 November 2006 (accessed 2 August 2007)
  28. ↑ "Zim losing inflation battle" Archived 28 October 2006 at the Wayback Machine , News24, 23 October 2006
  29. ↑ "Dr Gideon Gono: How Sanctions are ruining Zimbabwe", African Business, 1 June 2007 (accessed 2 August 2008)
  30. ↑ Leave Gono alone, AllAfrica, 26 July 2006 (subscription required) (accessed 2 August 2008)
  31. ↑ "Gideon Gono’s star starting to fade", Zimbabwe Review, 30 December 2007 (accessed 2 August 2008)
  32. ↑ "Welcome to Zimbabwe". 5 April 2010.
  33. ↑ "UPDATE 3-EU widens sanctions on Zimbabwe, includes companies". Reuters. 22 July 2008. Retrieved 16 February 2018.
  34. ↑ "Zimbabwe sanctions: EU removes 35 people from ban list". BBC News. 15 February 2011. Retrieved 12 July 2024.
  35. ↑ Sample, Ian (1 October 2009). "Ig Nobel awards: The gas-mask bra and the power of panda poo". The Guardian. ISSN   0261-3077 . Retrieved 28 November 2023.

See also

Gideon Gono
Gideon Gono10.jpg
Gono after speaking to Parliament in 2008
4th Governor of the Reserve Bank of Zimbabwe
In office
1 December 2003 –30 November 2013
International
National
Other
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