ANC loses patience with Reserve Bank’s quirky ownership structure
What might look like an attempt to conform with international practice carries the threat of further miring the respected public institution in the political fray
In SA, membership of the quirkiest club in global central banking just lost some of its cachet. The country’s Reserve Bank is one of a handful around the world still owned by shareholders, and that eccentric structure has just become another stick to beat it with after the ruling ANC mooted ending such an arrangement. The party’s policy conference approved a proposal on Wednesday, yet to be ratified by the wider membership, that would then push to make the central bank fully state-owned. What might look like an attempt at modernisation to conform with international practice carries with it the implicit threat of further miring one of SA’s most respected public institutions in the political fray. The Reserve Bank is already enduring an attack on its inflation-targeting mandate by the public protector, and any move to legislate a new ownership structure could facilitate more drastic change. The shareholder structure is a legacy of the central bank’s founding in 1921 and is typical of ...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.