Business: Everybody’s livelihood is at risk, particularly the poor, if the Reserve Bank is not truly independent

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Business: Everybody’s livelihood is at risk, particularly the poor, if the Reserve Bank is not truly independent By Tim Cohen tim_cohen

To make the issue of nationalising the South African Reserve Bank even weirder, if nationalising it doesn’t matter, then why did the rand once again fall out of bed when President Cyril Ramaphosa repeated at a political rally last week something that is already well-known ANC policy. Perhaps, after all, it does matter, but not in the way that economists or politicians are thinking about it at the moment.

The private shareholders — a remnant of history who have caused all kind of unnecessary headaches for Reserve Bank governors down the years — have no say in the Monetary Policy Committee, which is the central, powerhouse body responsible for holding the economy together. John Ashbourne, senior emerging markets economist at Capital Economics says the move — which would bring the bank in line with global norms — would have no effect on the bank’s independence.

Shareholders do elect seven of the bank’s 15 directors, but the institution is managed by the governor and the executive directors, who are all already appointed by the government. Shareholders have no control over the make-up of the Monetary Policy Committee, which is appointed by the governor.

 

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Who owns the Reserve Bank? | Business | M&G.MmusiMaimane and HermanMashaba , let's fix this one please. The anc will do it because they want to lie and manipulate more and more. The liberal mamparas and dumb ass anc supporters will believe them until it is too late Maybe they are going to steal it like they are going to steal the land.
แหล่ง: mailandguardian - 🏆 2. / 92 อ่านเพิ่มเติม »