ANC treads cautiously over nationalisation of Reserve Bank

The ANC says it will engage widely on the nationalisation of the Reserve Bank before moving forward with the implementation of the policy adopted at its conference in December.

The party appears to be treading cautiously after hastily tabling a motion on the nationalisation of the Reserve Bank in Parliament before withdrawing it at the prompting of Finance Minister Nhlanhla Nene.

There seems to be confusion in the ANC about the difference between the Bank’s ownership and its mandate.

The president appoints the Bank’s governor‚ who heads the monetary policy committee which oversees its mandate. According to the Constitution‚ the Bank is independent from the government and private shareholders have no influence over monetary policy.

President Cyril Ramaphosa was unequivocal about the future of the Bank at an interaction with editors last week‚ saying its independence — as enshrined in the Constitution — was sacrosanct and should not be changed.

ANC secretary-general Ace Magashule told journalists on Tuesday that the matter would be dealt with "sensitively"‚ with the party set to engage broadly on the issue first.

Business Day