DA opposed to plugging budget holes with Reserve Bank reserves
The maintenance of monetary stability and investor confidence is more important than short-term gains
19 February 2024 - 20:48
The DA is firmly opposed to the National Treasury resorting to the Reserve Bank’s Gold and Foreign Exchange Contingency Reserve Account (GFECRA) in a bid to stabilise the country’s finances.
There is strong speculation that finance minister Enoch Godongwana will announce that the Treasury plans to dip into the R500bn account, which contains the unrealised profits or losses incurred by the Reserve Bank on the country’s foreign exchange reserve holdings arising from changes in the value of the rand. Any net profit/loss in the GFECRA accrues to the government in terms of the SA Reserve Bank Act. ..
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.