The Reserve Bank is officially concerned about the potentially catastrophic impact of sanctions on South Africa's financial system.
But the load shedding risk ranks worse than being locked out of global markets in its assessment matrix.For more financial news, go to the A year ago, the SA Reserve Bank was keeping an eye on what it mostly referred to as the"Russia-Ukraine conflict" in a general kind of way. In its formal review of risks to South Africa's financial stability risks at the time, it listed"the possible impact of the Russia-Ukraine conflict on financial stability".
"The risk of secondary sanctions being imposed on South Africa amid the ongoing geopolitical polarisation resulting from the Russia-Ukraine war has increased," said the SARB in its annual report."Should these risks materialise, it would exacerbate the challenge of declining domestic financial market depth and liquidity."