"Removing the minority shareholders of the SARB will not change its mandate"

Economists say the rand has lost major ground after it was stated at the African National Congress (ANC) policy conference that the ruling party had been discussing nationalising the South African Reserve Bank (Sarb).

Alongside this, international factors and poor manufacturing figures have put pressure on the the local currency for most of the week.

At 4pm on Wednesday, the local currency was trading at R13.48 to the US dollar compared to R13.08 on Tuesday, at R17.41 to the pound from R17.10 before and at R15.27 to the euro from R14.95 the day before.

READ: Reserve bank proposal is in line with majority of OECD countries - Brown

ALSO READ: Why the ANC is gunning for the Reserve Bank (holder of ‘money printing presses’)

Ray White spoke to economist Isaac Matshego on the implications of having a wholly state-owned bank.

The bank says a change of ownership will not result in a higher degree of control as the bank will continue to have an oversight role.

Matshego has shared these sentiments and says the change will most certainly not change the bank's mandate.

I do not believe that getting rid of the minority shareholders of the Reserve Bank will actually change the mandate of the Reserve Bank.

Isaac Matshego, Economist at Nedbank

You must remember that the mandate of the Reserve Bank is in the Constitution.

Isaac Matshego, Economist at Nedbank

It was quite encouraging yesterday that Enoch Godongwana clarified that this proposed change will not affect the constituted mandate of the Sarb.

Isaac Matshego, Economist at Nedbank

Click on the link below to listen to the full audio...


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