Zuma places focus on central banks

President Jacob Zuma has stressed the importance of central banks and their ability to stimulate economic growth.

Speaking at the 40th Ordinary Meeting of the Assembly of Governors of the Association of African Central Banks (AACB) at the Reserve Bank on Tuesday‚ Zuma said: “This gathering occurs at a time when the global economy is still trying to shake off some of the negative legacies of the global financial crisis.”

He explained that central banks strengthen the international financial system by informing international financial regulations.

“Vigilance is still needed to ensure that the growth momentum is maintained and that financial markets are resilient.

“This meeting provides an excellent opportunity about the role central banks can play to address deficiencies and constraints to enhance growth in the different African regions.”

He added that there needs to be more focused attention to the role central banks and monetary policy could play in pursuit of the goals set out in the Abuja treaty and that central banks played an important role to play in promoting intercontinental trade.

“These interactions underpin sustainable development and will contribute to the eradication of poverty on the continent.”

The meeting comes as the Public Protector’s remedial action to change the Reserve Bank’s mandate was set aside at the Pretoria High Court on Tuesday.

In June‚ Public Protector Busisiwe Mkhwebane had ordered Parliament to amend the Constitution to change the mandate of the Reserve Bank‚ which would effectively put an end to inflation targeting as part of the remedial actions in the CIEX report investigation.

- BusinessLIVE