Register now for Fin24 Dashboard and get access to portfolios, watchlists, financial comparison tools, and a whole lot more to help you achieve your financial goals.

Data provided by McGregor BFA
All data is delayed
Loading...
Where am I? Home
 
Prices are delayed by 15min.
Join the Fin24.com conversation about JSE-listed stock by using every time you tweet.

'Sarb will not manipulate rand'

Feb 23 2010 15:35

Related Articles

Inflation 'to fall below 6%'

Haystek wins case against Sarb

Gordhan defends Sarb's autonomy

Please nationalise Sarb

Nationalise Sarb now: Nehawu

Sarb stands firm on independence

 

Top Stories

Cell C move sparks price war

May 27 2012 11:21

There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.

Another golf estate victim

May 27 2012 13:09

The oversupply of golf estates has claimed another victim.

Tupperware agents incensed by fakes

May 27 2012 11:49

The country's 200 000-odd Tupperware agents are angry about the counterfeit products being sold as the real McCoy.

 
Share Share line Print

Parliament - South African Reserve Bank Governor Gill Marcus on Tuesday firmly ruled out trying to manipulate the rand to an ideal exchange rate level and described calls for the nationalisation of the institution as "nuts".

"I don't think we will take the approach of targeting a level. It is complex and has a lot of issues around it," she told Parliament's portfolio and select committees on finance.

"We do not even have a view of what an ideal exchange rate will be."

Marcus again rejected any notion that the central bank would seek to stabilise the much-traded local currency by aggressively building up its forex reserves.

"You have to be brave and you have to have big pockets. You will be taken on," she warned.

Marcus saw a recent public debate about the mandate of the central bank as in fact being about the different factors, such as job creation, the bank had to take into consideration when making decisions.

'I don't think this is healthy'

She complained that calls for the nationalisation of Sarb had led to a curious situation where a shareholder had tried to sell shares for the amount of R4 600.

"It is a very interesting question as to what is doing this. Is it greed?

"Who would want to push for the nationalisation of the Reserve Bank? It is nuts.

"They are creating a debate that is a false debate, that is not happening. I'm not saying we should not debate issues, but I don't think this is healthy."

ANC secretary general Gwede Mantashe last month asked the party to discuss the nationalisation of the central bank.

Some say support from shareholders could be an opportunistic ploy to call for liquidation of the bank, because the Reserve Bank Act provides that, in that case, 60% of the bank's net assets would go to the government, and 40% to its shareholders.

Marcus said it was clear that some Sarb shareholders and board members put personal interest before that of the bank and this had created a "fraught" situation that should be reviewed.

"We need a board that can become a resource to the organisation."

The board routinely clashed with her predecessor Tito Mboweni, with one heated exchange leading to a hate speech complaint against the former governor.

Sarb is one of a few central banks in the world owned by private shareholders, although they have no say in its operations and policies.

- Sapa

 
 
Comment on this story
0 comments
Add your comment
Comment 0 characters remaining
It pays to know the cost and what you’re getting in return
May 28 2012 09:33

Investors may not have a clue what they’re paying their money managers or they type of service they’re getting, or, whether they can actually negotiate lower fees. (Reuters)

Bertie

This is how Coke did the big picture thing in the late 1970s early 1980s. By then it was clear that population growth had stabilized. So, where was increased revenue going to come from? The small picture would focus on getting more marketshare from Pepsi.   But Roberto Goizueta, on of the Tita... Read their blog...

Recently updated
Podcasts
The Sishen saga

Legal expert Peter Leon on the increasingly complex legal wrangle over the Sishen Iron Ore mine. Time: 8:17 Listen Here...

Before you list

Is the clarion call of the JSE calling? Listen to Fin24’s expert panel discussion before you list your small business. Time: 17:29

Compare and Buy

Compare and apply for hundreds of financial products from many suppliers.

Credit cards Medical aid Current accounts Think Money

Money Clinic

Money Clinic Do you have a question about your finances? We'll get an expert opinion.
Click here...

Loading...