Now you can buy shares in the Reserve Bank (But is it a good idea?)

The South African Reserve Bank has made nearly 150,000 shares available for purchase to the public.

This follows a High Court ruling last year which directed some Reserve Bank shareholders to sell shares in excess of the statutory limit of 10 000.

Reserve Bank Governor (Sarb) Lesetja Kganyago, made an official announcement today.

Kganyago says shareholders will have no say over the executive running of the bank but can elect a maximum of seven non-executive directors of the board and approved by a panel chaired by the governor of the Sarb.

Founder of Just One Lap, Simon Brown, highlights some other pros and cons of investing in Sarb.

Every year your share will pay you 10c, what we call a dividend. You will get 10c per share. The share costs R10 so effectively you get a 1% payment back on the share every year.

Founder of Just One Lap, Simon Brown

Shareholders don’t get set interest rates, they don’t get to decide any policy at the reserve bank beyond nominating a few non-executives.

Founder of Just One Lap, Simon Brown

You are not nominating people to sit on the monetary policy committee which is the group of men and women who set out interest rates.

Founder of Just One Lap, Simon Brown

From the perspective of an investment this is not a great investment…the value of the shares never changes. They are today what they were in 1920.

Founder of Just One Lap, Simon Brown

I think a part of what the governor is doing is saying let’s get as many South Africans out there and buying some…he really wants to diversify that base and get more individuals on board.

Founder of Just One Lap, Simon Brown

Listen to the full interview below...


Recommended

by NEWSROOM AI
Read More
SA faces worst economic crisis since '94, budget has no substance - analyst

SA faces worst economic crisis since '94, budget has no substance - analyst

Analyst Duma Gqubule says Gordhan's speech has no plans for economic growth, and he 'actually said nothing about transformation'.

5 things you need to know to understand the 'Public Protector vs Absa' debacle

5 things you need to know to understand the 'Public Protector vs Absa' debacle

Can’t wrap your head around it? You’re not alone. The Money Show’s Bruce Whitfield interviews Intellidex MD Stuart Theobald.

How to invest when interest rates are low

How to invest when interest rates are low

The Money Show’s Bruce Whitfield interviews Ashburton Chief Investment Officer Paolo Senatore.

Tighten your budget and get out of debt to survive rate hike - expert

Tighten your budget and get out of debt to survive rate hike - expert

In light of interest rate hike, Financial advisor Paul Roelofse offered practical advice on how reduce debt and budget better.

Was the Sarb’s 50 basis points interest rate hike the right call?

Was the Sarb’s 50 basis points interest rate hike the right call?

Independent Economist Trudi Makhaya and the Monetary Justice Project's Philip Haslam discuss Thurday's interest rate hike.

I was wrong not to worry about SA's finances – The Economist Africa Editor

I was wrong not to worry about SA's finances – The Economist Africa Editor

The Economist's Africa Editor used to have confidence in the SA Reserve Bank and Finance Ministry. “I was wrong,” he now says.

Popular articles
[WATCH] Can you do the Thuso Phala and Vosho as well as this little boy?

[WATCH] Can you do the Thuso Phala and Vosho as well as this little boy?

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone viral'.

'I’ve never invested in the stock exchange. I know it too well'

'I’ve never invested in the stock exchange. I know it too well'

Bruce Whitfield interviews Prof Lorenzo Fioramonti (UP) about his attitude toward money (hopes, fears, successes, failures, etc.).

Magashule has never taken responsibility for anything says Mxolisi Dukwana

Magashule has never taken responsibility for anything says Mxolisi Dukwana

Dukwana accuses Magasshule of taking him to Saxonwold and asking him to sign a project over to the Guptas for R2 million a month.

Judge in Omotoso case dismisses defence application to recuse himself

Judge in Omotoso case dismisses defence application to recuse himself

Judge Mandela Makaula has dismissed the defence application saying it has no merit.

'As long as I'm mayor, I'm not going to sit back and watch criminals take over'

'As long as I'm mayor, I'm not going to sit back and watch criminals take over'

City of Johannesburg Executive Mayor Herman Mashaba says criminals cannot be allowed to threaten service delivery in the city.