What will nationalising the Reserve Bank achieve, asks Sarb's Rashad Cassim

The South African Reserve Bank has been in the spotlight this week as ANC secretary general said the ANC has agreed to expand the mandate of the South African Reserve Bank (Sarb) to focus on development and job creation.

ANC leaders such as Tito Mboweni took issue with his statements and on Thursday President Cyril Ramaphosa released a statement reaffirming the mandate of the reserve bank, describing the current spat as "not helpful".

The Sarb on Thursday hosted a Monetary Policy Forum (MPF) in Cape Town, a bi-annual event meant to communicate and create a better understanding of monetary policy among stakeholders and members of the public.

South African Reserve Bank head of research Rashad Cassim details what the MPF does and the mandate of the Reserve Bank.

Read: ANC Sarb spat takes to Twitter: 'Is there policy uncertainty?' tweets Jacob Zuma

What we do twice a year is we write a document which has many elements to it. The most important is what is the Reserve Bank's take on the state of the economy, where is the global economy going, what are the growth issues and what is happening in the global financial markets and domestic markets?

Rashad Cassim, Head of research - South African Reserve Bank

We give a sense of what is happening in the global and domestic markets but more importantly explain reasons for the decisions we take.

Rashad Cassim, head of research - South African Reserve Bank

Cassim explained some of the processes considered when making decisions at the Reserve Bank.

He says it goes through a series of intense meetings looking at the state of the economy and everyone involved gives evidence-based presentations.

Two days before, we make any kind of decisions we have all sorts of presentations on different aspects of the economy, looking at drivers of inflation.

Rashad Cassim, Head of research - South African Reserve Bank

He commented on the current debates about nationalising the Reserve Bank.

The essence of the debate is what would you want to achieve by nationalising the Reserve Bank and in principle there is nothing wrong with nationalising the Reserve Bank.

Rashad Cassim, Head of research - South African Reserve Bank

What is the motivation for calling for nationalisation? Is it purely an obsession with ownership of the private sector or certain individual having shares in the bank or is it something more fundamental? That is something that I really don't understand.

Rashad Cassim, Head of research - South African Reserve Bank

There is a misconception, that some may think, that the reason why the bank is not carrying out its so-called developmental mandate is because of the private shareholders. There is a total disconnect between that.

Rashad Cassim, Head of research - South African Reserve Bank

The important issue is what are you willing to pay for it, how do you value it and what are you going to get out of it tomorrow if you nationalise, because nothing fundamental in the practice of price stability or financial stability will change.

Rashad Cassim, Head of research - South African Reserve Bank

To hear the rest of the conversation, listen below:


This article first appeared on CapeTalk : What will nationalising the Reserve Bank achieve, asks Sarb's Rashad Cassim


Recommended

by NEWSROOM AI
Read More
Analysts debate Reserve Bank mandate

Analysts debate Reserve Bank mandate

Pundits debate Sarb's role following a spat between ANC secretary-general Ace Magashule' and other party members.

ANC Sarb spat takes to Twitter: 'Is there policy uncertainty?' tweets Jacob Zuma

ANC Sarb spat takes to Twitter: 'Is there policy uncertainty?' tweets Jacob Zuma

Shortly after President Ramaphosa released a statement reaffirming the mandate of the reserve bank, others contradicted him.

ANC contradicts the ANC on economy while South Africans get poorer and poorer

ANC contradicts the ANC on economy while South Africans get poorer and poorer

The Money Show's Bruce Whitfield interviews Clement Manyathela (EWN) and Kevin Lings, Chief Economist at Stanlib Asset Management.

'Ramaphosa needs to stand up and be counted, help the ANC make bold decisions'

'Ramaphosa needs to stand up and be counted, help the ANC make bold decisions'

Former Gauteng premier Mbhazima Shilowa says the ANC leadership is too busy with public spats instead of focusing on the country.

Ace Magashule's ANC wants to 'explore' the printing of money

Ace Magashule's ANC wants to 'explore' the printing of money

Bruce Whitfield interviews Sarb Governor Lesetja Kganyago, Peter Attard Montalto (Intellidex) and Mpumelelo Mkhabela (Unisa).

'Magashule's stance on the Reserve Bank bluntly undermines Ramaphosa's new dawn'

'Magashule's stance on the Reserve Bank bluntly undermines Ramaphosa's new dawn'

Pan African Investment and Research Services CEO Iraj Abedian says South Africa doesn't need two centres of power.

New anti-smoking bill: Pundits debate the pros and cons

New anti-smoking bill: Pundits debate the pros and cons

Africa Harm Reduction Alliance's Dr Kgosi Letlape and health department's Lynne Moeng on new tobacco regulations in South Africa.

MTN shares in Nigeria tank on corruption agency probe of its listing in Lagos

MTN shares in Nigeria tank on corruption agency probe of its listing in Lagos

The West African nation’s anti-graft agency is investigating the South African mobile phone giant’s listing in Lagos.

Popular articles
SAA doesn't have cash flow to pay unions what they want, says airline exec

SAA doesn't have cash flow to pay unions what they want, says airline exec

Thousands of SAA workers, including cabin crew, technical and ground staff, began striking on Friday to demand higher pay.

Karatbars – is it a scam? The case for and against…

Karatbars – is it a scam? The case for and against…

Bruce Whitfield interviews senior Karatbars representatives, a financial advisor and someone who was invited to its conference.

[WATCH] Man forgets to engage handbrake, truck almost hits other cars

[WATCH] Man forgets to engage handbrake, truck almost hits other cars

Khabazela shares tweets and Facebook posts that have gone viral.

We have bent over backwards, it appears unions don't want to settle - SAA

We have bent over backwards, it appears unions don't want to settle - SAA

Sacca president, Zazi Nsibanyoni-Anyiam Mugambi and airlines acting CFO Deon Fredricks weigh in on the strike facing the airline.

Can’t find your phone? Drop everything – thieves can get into your banking app!

Can’t find your phone? Drop everything – thieves can get into your banking app!

Did someone steal your phone? Contact your bank without hesitation warns consumer journalist Wendy Knowler.

'Unions are making a mistake. SAA is dying. It’s not Eskom – we don’t need it'

'Unions are making a mistake. SAA is dying. It’s not Eskom – we don’t need it'

SAA is on its knees, cap in hand, asking taxpayers for R2 billion this month. Unions must be careful, warns Guy Leitch (SA Flyer).

White pupils at posh Kingswood College refer to black scholars as 'snoobab'

White pupils at posh Kingswood College refer to black scholars as 'snoobab'

"This problem is bigger than just a Kingswood problem. The relevant processes will unfold," says College Head Colleen Vassiliou.

Investors need to understand redress and sensitivities, says Eusebius

Investors need to understand redress and sensitivities, says Eusebius

Eusebius engages callers on the Richard Branson tweet that has been widely criticised for lacking diversity.