Political interference is big sticking point in Reserve Bank’s nationalisation
Jannie Rossouw, head of the school of economic and business sciences at Wits, says a change in the bank’s ownership would not affect the Constitutional mandate of the central bank
The ANC recently adopted a resolution to nationalise the country’s central bank. The move came after calls for the government to rein in the South African Reserve Bank, causing concern that the bank’s independence would be lost. Sibonelo Radebe asked Jannie Rossouw, head of the school of economic and business sciences at the University of the Witwatersrand, to discuss the implications. What do you make of the ANC’s resolution? The ANC’s thinking around this resolution is a bit ambiguous and confusing. The resolution itself and subsequent comments by the new ANC president, Cyril Ramaphosa, say that the resolution should not affect the independence of the bank. While upholding the resolution to nationalise, Ramaphosa added this qualification: "The Reserve Bank plays a critical role in the life of any nation with regard to monetary policy and safeguarding and promoting the value of its currency. The ANC once more reaffirms the role, mandate and independence of the Reserve Bank." He cle...
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.