ANC Economic Transformation Committee Suggests Nationalism of the SA Reserve Bank at Policy Conference

• During the African National Congress policy conference, the party said it wants the South African Reserve Bank to be nationalised
• Chairperson of the Economic Transformation Committee Mmamoloko Kubayi said the ANC needs to find a mechanism to change the bank’s mandate
• ANC President Cyril Ramaphosa called for the process to be done within the fiscal policy to ensure the national debt is maintained

JOHANNESBURG - The African National Congress suggested that the nationalisation of the South African Reserve Bank be accelerated. This was disclosed at the ANC’s policy conference over the weekend.

Chairperson of the Economic Transformation Committee Mmamoloko Kubayi said the party does not plan to make constitutional amendments to change the bank’s directive. According to BusinessTech, she said the reserve bank must assist the ANC with employer contributions.

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Kubayi said the ANC must find a mechanism to change the reserve bank’s mandate. He said the committee believes that the inflation targeting mandate must be expanded to include solutions for unemployment.

The ANC decided in 2017 that the government should have ownership of SARB since the ownership structure infringed on the nation’s sovereignty. However, Bloomberg reported the shareholders do not have a say over monetary-policy decisions and the bank’s mandate.

Conference delegates want the process to be accelerated to find mechanisms to restructure the bank’s ownership in a reasonable manner and at a reasonable pace.

ANC President Cyril Ramaphosa called for the process to be done within the fiscal policy to ensure the national debt is maintained.

South Africans were unimpressed with the proposal:

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@llpot said:

“And here we go with a push to Nationalise the SA reserve bank. ANC needs a new slush fund to loot.”

@Kea91492014 commented:

“They want to own the South African Reserve Bank so they can do to it what they did to VBS.”

@Mtho_G_Mthethwa posted:

“They would milk it dry in weeks. EFF should not be allowed anywhere near any financial institution in our country.”

@InspiredMindsSA added:

“They will cause hyperinflation in a matter of weeks. So, they’d achieve full equality - we’d all be billionaires. Unfortunately, the cost of living will cost trillions and only the ANC quadrillionaires will be blessed enough to afford to live.”

SA Reserve Bank announces repo rate hike by 75 basis points, bad news for car and home loans

In a related matter, Briefly News also reported the country’s repo rate has gone up by 75 basis points, according to the Governor of the SA Reserve Bank, Lesetja Kganyago. He made the announcement on Thursday, 21 July and said inflation continues to “surprise to the upside.”

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The cost of living has been spiralling out of control in recent months, and the large hike adds pressure to already struggling citizens.

Source: Briefly News