David Mabuza ducks and dives on Reserve Bank nationalisation
The deputy president fudges the DA’s questions on Moody’s concern over ‘nationalisation’ of the Reserve Bank
Deputy President David Mabuza avoided answering questions in Parliament about the mooted "nationalisation" of the Reserve Bank amid wider concern that this could lead to another credit ratings downgrade.In December, the ANC instructed the government to begin the process of nationalising the Reserve Bank.In March, Finance Minister Nhlanhla Nene reportedly persuaded the ANC in Parliament to drop a scheduled motion on the nationalisation of the central bank at the final hour, arguing that the debate would unsettle the markets at a time when a delegation from Moody’s Investors Service was conducting an in-country visit.Moody’s gave SA a reprieve, maintaining its Baa3 rating, one notch above junk status, with a stable outlook.The credit-ratings agency cited the change in political leadership and the recovery of the country’s institutions among its reasons for keeping SA at investment grade. A downgrade would have meant all three major ratings agencies had SA’s foreign-currency and rand-d...
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.