The rand was wobbly on Thursday morning, suggesting that the market was still unsettled over the ANC’s proposal to nationalise the Reserve Bank. The local currency fell as much as 2% to the dollar following the proposal, which analysts said cast a shadow on the independence of the central bank. Economist Raymond Parsons said the recommendation challenged the status of the Bank. "Yet it may also not even be a completely practical step but that does not mean it is also harmless," Parsons said. "Although there is no immediate net effect, the question is whether it will result in more direction of policy and a change in the [Bank’s] mandate in future. For its part, the ruling party sought to allay market jitters, saying it would guarantee the independence of the central bank, which rating agencies have previously cited as counting in SA’s favour in terms of institutional strength. The role of the Bank has come under scrutiny since Public Protector Busisiwe Mkhwebane’s recommendation lat...
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