Ramaphosa confirms no change in SARB policy

By Doug Mattushek - 07 June 2019Views : 232

President Cyril Ramaphosa has called for calm and confirmed that there has been no dramatic change in policy of the South African Reserve Bank.

Ramaphosa released a statement on Thursday evening, backing up finance minister Tito Mboweni and ANC sub-committee on economic transformation head Enoch Godongwana.

In the constitution of the Republic of South Africa, one of SARB's roles is protecting "the value of the currency in the interest of balanced and sustainable economic growth".

"This policy has not changed," read Ramaphosa's statement.

"It is our desire for the South African Reserve Bank to be publicly owned. However, we recognise that this will come at a cost, which given our current economic and fiscal situation, is simply not prudent.”

In January, Ramaphosa told the World Economic Forum that the Reserve Bank will remain independent no matter what.

"There is no intention whatsoever to tinker with the independence of the Reserve Bank,” he said.

“The independence of the Reserve Bank is sacrosanct, there should be no debate about that. We should not be alarmed."

On Tuesday, ANC secretary-general Ace Magashule revealed that one of the resolution of the national executive committee meeting that took place over the weekend was that SARB’s mandate would be changed to assist ailing state owned entities.

Mboweni was quick to correct and contradict Magashule’s “reckless” statements, as was Godongwana in the days that followed.