'So, who do we believe?': Mzansi in the dark after clashing Reserve Bank statements
South Africans are in the dark about the ANC's stance on the Reserve Bank's policy following contradictory statements by the party's secretary-general, Ace Magashule, finance minister Tito Mboweni and ANC economic transformation head Enoch Godongwana on Tuesday.
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Magashule told journalists that the party had decided at the national executive committee (NEC) lekgotla at the weekend to expand the Bank's mandate in order to ease the country's poverty, unemployment and inequality.
"It was agreed that all deployees will ensure that resolutions of the 54th national conference be fully implemented. In this regard, the ANC NEC lekgotla agreed to expand the mandate of the Reserve Bank beyond price stability to include growth and employment."
However, Godongwana disputed that any decision had been taken regarding the central bank. Instead, he said the Bank's head and the finance minister would work closely in evaluating the country's economic performance.
Finance minister Tito Mboweni weighed in on the matter on Twitter, contradicting Godongwana in a sense by excluding himself from the decision-making process.He said it was the government that formulated the central bank's policies.
Government sets the mandate for the SARB. There is no quantitative easing thing here. The primary mandate of the SA Reserve Bank is to “protect the value of the currency in the interest of balanced economic growth and development”.— Tito Mboweni (@tito_mboweni) June 4, 2019
South Africans have expressed concern over the clash.
ANC doesn’t know what to do with the Reserve Bank. It’s very clear— Novak RG19 (@Captain_Ddz) June 5, 2019
Lol. The cabinet doesn't know what to do with the economy & Reserve Bank. Debt still being the elephant in the room— uBab' Mashinini. (@Sir_Mbuthi) June 5, 2019