By Bennie Mundando
THE International Monetary Fund (IMF) has opted watch from the terraces over the appointment of Christopher Mvunga as Bank of Zambia (BoZ) Governor but says the increased independence of the Central Bank.
Queried on the implications of firing Denny Kalyalya and replacing him with Mr. Mvunga, the IMF did not want to be drawn into the politics involving the changes at BoZ but noted that the macroeconomic stability that most developing countries have enjoyed in recent years has greatly relied on the much-improved effectiveness and increased independence of central banks.
“We note the change in leadership announced over the weekend at the Bank of Zambia before the end of the previous Governor’s mandate. It is imperative that central banks’ operational independence and credibility is maintained, particularly at this critical time when economic stability is threatened by the COVID-19 pandemic.
“Without credible institutions and sound policies, sustained economic growth, and much needed improvements in living standards will not be possible,” reads the statement in part.
