Protector pushes for change to Reserve Bank’s constitutional mandate
Public Protector Busisiwe Mkhwebane also wants Absa to cough up R1.125bn
In an astounding move, Public Protector Busisiwe Mkhwebane on Monday recommended that the Reserve Bank’s constitutional mandate be changed from protecting the value of the rand to a focus on the protection of “citizens’ socio-economic wellbeing”.
The announcement sent the rand into a tailspin, with the local currency quickly weakening more than 2% against the dollar.
Tampering with the mandate of the central bank is viewed extremely negatively by investors and credit ratings agencies, and as a threat to investment security.
The recommendation is contained in Mkhwebane’s report into the government’s failure to recover apartheid-era funds extended to Bankorp, which was bought by Absa in 1992.
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