But where then does this leave South Africa? Together with other institutions, it … South Africa’s economy probably contracted by an annualized 40.1% in the second quarter, according to central bank forecasts. It would be hopeful at best and myopic at worst to argue that the medium- and long-term economic consequences of this will not be profound.Additionally, it has become increasingly implausible to claim that the world’s central banks are not monetising the deficits of the largest economies, as they climb inexorably to cover the social and economic costs of the most rapid economic collapse of supply and demand in history. This would be impossible to control without further printing of money, leading to hyperinflation.Finally, unlike the euro and the dollar, the rand is not a “hard” currency, which is seen as a store of value in times of market uncertainty.
The EFF will on Sunday elect 35 additional members to form the party's central command team. Julius Malema retained his position as commander-in-chief, Floyd Shivambu remained his deputy. (Photo by Gallo Images/Alet Pretorius)The party’s chief whip Floyd Shivambu appeared before the finance standing committee on Tuesday, 25 August 2020.The Bill, introduced by the party’s leader Julius Malema, is aimed at making the bank entirely state-owned and to take it off the hands of private individuals.In a statement, the red berets have welcomed the development surrounding the bill and said South Africa is one of the few countries in the world with an anomaly of a privately-owned central bank.“We as the Economic Freedom Fighters (EFF) are leading a process that will culminate in transferring the central bank to the ownership of the people as a whole”, said EFF spokesperson Vuyani Pambo in a statement on Wednesday, 26 August 2020Pambo added that the bank is an important instrument in thoroughgoing socio-economic transformation and cannot be left in the hands of private individuals and institutions.“Unlike all other political parties that (are) in South Africa’s parliament, the EFF has ideological, political and technical capacity to introduce legislation in Parliament and will continue to do so on behalf of the people”, he further said.The red berets have called on “progressive forces” to make both oral and written submissions to Parliament and reclaim an asset which under normal processes, should belong to the people as a whole.During his presentation to Parliament, Shivambu highlighted that the bill would empower the minister of finance to appoint auditors for the bank and make the state the sole shareholders.“The private shareholders through acquired shares, in terms of the South African Reserve Bank Act, have some role to play in the governance of the South African Reserve Bank, including the election of the directors, and receive dividends from the bank’s profits”, Shivambu said.“There is no law in South Africa that is cast in stone.
He was quoted in last week’s I would, however, suggest that SARB governor Lesetja Khanyago treats such a step with extreme caution, and for three reasons.Firstly, such is the collapse of the “money multiplier” in the US and Europe (the transmission mechanism by which dollars deposited by the central bank in a commercial bank finds its way into the real economy and people’s pockets) even with the expansion in money supply the net growth in total money is almost zero.Money created by central banks is simply horded by commercial banks as they look to shore up their balance sheets and pull back on private sector lending. South African economy expected to shrink by 40% – Reserve Bank What will the effects of this be? Some, like Larry Summers of Harvard University, argue it will be Japan 2.0-style decade-long deflation and “secular stagnation”.Others, such as Stephen Roach of Yale University, claim it will lead to a protracted period of 1970s-style “stagflation”. Traders suddenly dare to believe in an emerging markets rally 15 Jan, 2019, 09.05 AM IST The South African Reserve Bank and Bank Indonesia will likely do the same the following day. The Economic Freedom Fighters (EFF) is seemingly pleased with Parliament’s decision to proceed with public hearings and submissions for the South African Reserve Bank (Sarb) Amendment Bill… The South African Reserve Bank is the central bank of the Republic of South Africa.
Parliament begins debate on nationalisation of Reserve Bank Parliament has begun deliberating on a bill seeking to amend the South African Reserve Bank Act in order to allow for the Bank to be nationalised. The EFF is hosting its second national elective conference at Nasrec, Johannesburg.
Management of the South African money and banking system; Risk Management. Either the government embraces prudent economic management, structural reforms and a return to economic growth, or they resort to hyperinflation and the destruction of the capital base of the South African economy.Dinner plans? Watch as SuzelleDIY get creative and make some sweet and savoury vetkoek!TheSouthAfrican.com is all about South Africa and the stories that affect South Africans, wherever they are in the world.Help support journalists, the guardians of independent journalism, through our Despite the market turmoil and the measures outlined above, the dollar’s appreciation has been “unprecedented this early in a recession,” wrote Daniel Hui, global executive director of currency-exchange strategy at JPMorgan Chase & Co.The ZAR, however, is already down 30% year to date against the dollar.Sadly, for South Africa the costs of the crisis can only be managed through two ways. Its assets have expanded by about $1.14 trillion between 18 March and 31 March alone — a pace of just over $1 million per second.European Central Bank (ECB) president Christine Lagarde in Frankfurt has done her best not to be outdone. The bank notified the South African Reserve Bank on Monday about its plan to exit the country.