Reserve Bank Will Do Everything To Protect Independence

SA Reserve Bank Governor Lesetja Kganyago is expected to announce movement in interest rates.
SA Reserve Bank Governor Lesetja Kganyago. Image: Business Day

JOHANNESBURG – Lesetja Kganyago says that the South African Reserve Bank (Sarb) will do everything in its power to protect its independence.

The reserve bank governor says that it will cooperate with all governmental and parliamentary processes tasked to look at options to nationalise the bank.

EFF leader Julius Malema introduced a bill in Parliament to nationalise the central bank last week.

If passed, this will see the state become the sole holder of the shares in the bank and provide the appointment of certain board directors.

The African National Congress (ANC) also resolved at its conference in December to move full state ownership of the reserve bank, saying the current ownership structure was a historical anomaly.

But Kganyago says that nationalising the bank will be costly and risks destabilising the economy.

“Keep the reserve bank outside politics and give it to technocrats, whose job is to make this decision. This country is good at making announcements. We can’t run a country through announcements.”