RESERVE BANK
KHAYA SITHOLE: VBS failure is no time to fight a straw man
For an institution that thrives on being opaque and inscrutable while quietly executing its oversight role, the South African Reserve Bank’s recent period under the spotlight has been most unusual. First it was subject to an abandoned ANC parliamentary motion aimed at debating its nationalisation, which stemmed from the party’s December conference. The issue is the current ownership structure of the bank, which enables individuals — including foreigners — to own shares. For reasons yet to be ventilated by the ANC, it seems that the prevailing sentiment is that the mere presence of individual shareholders is politically undesirable. This appears to be because shareholders are able to appoint a minority of the Bank’s board members. While no single ownership model prevails across the world, there is no doubt that all credible governments exercise full control over their central banks. In the South African case — despite individual shareholders — the core functions of the Bank remain su...
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.