It's been a rough couple of years for the South African Reserve Bank, through no fault of its own. The political contestation over its mandate and composition, largely between factional interests in the governing ANC but also from the EFF, has been to the detriment of South Africa. The latest splatter arising from the ANC 2019 election manifesto is also unhelpful. Let's cut through the noise and disinformation, and talk truth.
What is the mandate of the South African Reserve Bank?
According to Section 224 of the Constitution:
"The primary object of the South African Reserve Bank is to protect the value of the currency in the interest of balance and sustainable economic growth in the Republic. The South African Reserve Bank, in pursuit of its primary object, must perform its function independently and without fear, favour or prejudice, but there must be regular consultation between the Bank and the Cabinet member responsible for national financial matters."
What does the ANC want the Reserve Bank to do?
According to the ANC election manifesto launched on 12 January 2019:
"The ANC believes that the South African Reserve Bank must pursue a flexible monetary policy regime, aligned with the objectives of the...