Tapping into the contingency reserve account is on, says Absa, but rules are key
Such a move may have important monetary policy and political economy implications, bank economist warns
19 February 2024 - 05:00
Absa, one of SA’s four largest banks, says the National Treasury can easily tap into part of the Reserve Bank’s gold and foreign exchange contingency reserve account to provide some fiscal relief but warns of several important monetary policy and political economy implications such a move may have.
Finance minister Enoch Godongwana is expected to make an announcement on how the Treasury wishes to use the account, which holds about R500bn, or according to Absa Research about 7% of 2023 GDP, during his 2024 national budget speech on Wednesday...
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