Simply discussing the possibility of nationalisation sends a signal to SA and international companies and investors that the institution may lose all credibilityChanging the mandate of, and possibly nationalising, the SA Reserve Bank is unlikely to solve the major problems afflicting South Africans, especially unemployment and energy insecurity.
But changing the bank’s mandate would not remove the inefficiencies and higher costs across the country’s ports, rail and roads, all of which drive up prices. The rand performs well when commodity prices are higher, but the country lacks the necessary growth fundamentals to ensure the future strength of the currency to a significant extent. Weakness has already been priced in.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more: