This Wednesday, Refilwe Moloto and Africa Melane picked up on a very important conversation that began in recent weeks.
Founder and Principal Advisor, Ambassador Advisory, Refilwe Moloto unpacks the role and responsibilities of central banks as well as the risks of shifting these as played out in Africa.
In particular, the appropriateness of price stability via inflation targeting, for the average man on the street, not just big business especially in a small, open economies, by which Africa is dominated.
With a volatile exchange rate & the dependence on commodities, African economies are effectively price-takers in a dollar-denominated world— Refilwe Moloto, Founder and Principal Advisor at Ambassador Advisory
This has an impact on both the prices we earn on our exports, but also the prices the average consumer on the street is faced with their basket is largely comprised of food, energy and transport. Maize & oil are priced in dollarised markets.
These are very different circumstances from countries like the USA, whose central bank mission statements are being used in defence of abandoning inflation targeting in SA.
Listen to the Business in Africa report with Refilwe Moloto here: