Nationalisation of Reserve Bank ‘unlikely to happen soon’
ANC move called a ‘big own goal’, rand weakens more than 2% against US dollar in reaction to proposal
The ANC policy proposal to nationalise the South African Reserve Bank would have no effect on the running of the Bank, nor could it take place any time soon, the governing party said on Wednesday. The proposal emerged at its national policy conference, which ended on Wednesday. The rand reacted immediately to the proposal, weakening more than 2% against the US dollar but later paring back some of its losses to close on Wednesday 1.6% weaker. The announcement that the Bank might be nationalised was a "big own goal" that achieved nothing and upset investors, said Investec CEO Stephen Koseff.It should not affect the Bank’s independence, as this was enshrined in the Constitution, but the market had reacted negatively because it "doesn’t like the signalling", Koseff said. The presence of the proposal in the final recommendations, which will now be taken to the party’s national elective conference in December, is seen largely as part of the political manoeuvring between factions. A group ...
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