NEW CBE GOVERNOR BEGINS WORK ON FIRST DAY

MBABANE - The new governor of the central bank of Eswatini (CBE), Dr Phil Mnisi, wasted no time yesterday and began to execute his duties promptly.

Mnisi was yesterday formally introduced to CBE staff and stakeholders by Minister of Finance Neal Rijkenberg. Mnisi’s first day at the office was a success and he said he had already begun executing his duties as expected. The newly appointed governor of CBE said he was warmly welcomed by the staff and stakeholders and there is more work to be done. “After the minister formally introduced me to the staff and stakeholders I began to do the work that is expected of me,” he said. The governor said for the next 90 days, focus will be on familiarising himself with the central bank as well tackling each and every task. As a timely person, Mnisi assured that he will be efficient and timely in his new role.

As the new Central bank governor, Mnisi is expected to set and upgrade the monetary and regulatory policies. Monetary policy is the control of the quantity of money available in an economy and the channels by which new money is supplied. Regulatory policy is about achieving government’s objectives through the use of regulations, laws, and other instruments to deliver better economic and social outcomes and thus enhance the life of citizens and business. He also expected to determine interest rates, which is the amount of interest due per period, as a proportion of the amount lent, deposited, or borrowed. The total interest on an amount lent or borrowed depends on the principal sum, the interest rate, the compounding frequency, and the length of time over which it is lent, deposited, or borrowed.

The governor is also expected to maintain price stability, food and fuel prices are a challenge in the business sector which has relatively affected the movement of money in the market locally. Mnisi is also expected to control the national money supply and issuance and foreign exchange currency rates and gold reserves. The current national debt of Eswatini is close to 60 per cent of the threshold, which the central bank should aim to reduce. Part of the task that Mnisi is expected to execute is the shift from the expansionary monetary policy to a contractionary monetary policy, which was imitated by CBE a few months bank. 

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