Thabo Mbeki: Nationalising the Reserve Bank would be pointless

Thabo Mbeki: Nationalising the Reserve Bank would be pointless

Nationalising the Reserve Bank has been hotly-debated and former president Thabo Mbeki has weighed in with his opinion. Mbeki made it clear that he felt the move would be pointless and would divert funding from more vital endeavours.

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Ex-president Thabo Mbeki has revealed his opinion on the nationalisation of the Reserve Bank, adamant that the move would be pointless.

According to BusinessLIVE, these comments are at odds with some in the ANC, including President Cyril Ramaphosa, who recently told Parliament that removing private shareholders of the bank would allow for 'sovereignty'.

Nevertheless, Mbeki is adamant that the costly move would yield disappointing results for those who called for it:

“Nothing would change in terms of the behaviour of the Reserve Bank, nothing.”

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The former president commented at the Rand Easter Show yesterday that someone would need to sit him down and explain to him why the nationalisation should take place:

“I hear people saying the Reserve Bank must move away from this business of inflation targeting. Inflation targeting is not a decision of the Reserve Bank, it is a decision of the South African government."

The leader went on to question whether or not current shareholders would be compensated for their shares, as that would mean the government would have to buy them out.

Mbeki clearly felt that the funds, estimated to cost between R20 million and R100 billion, could be put to more productive uses:

“I don’t know where you are going to get the money from,” the former president said. The government would need to “divert money which we need to build schools and clinics and so on, to buy out these shareholders. For what reason?”

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