Nationalising the Reserve Bank is irrelevant - economist

The African National Congress’ (ANC) national executive committee has announced that its economic transformation committee will begin the process of nationalising the South African Reserve Bank (Sarb).

On Tuesday, Secretary General Ace Magashule said they would discuss the modalities around nationalising the central bank to kickstart the process.

Last week, President Cyril Ramaphosa indicated that he wants the independence of the country's Reserve Bank to be protected.

Dr Iraj Abedian, Chief economist, Pan-African Investment and Research spoke to Karima Brown to unpack the matter and what it means for the economy.

The reality is that this is a absolute irrelevant story for the economy, society, jobs, growth for politics. It is just absolutely no impact. It just sounds good.

Dr Iraj Abedian, Chief economist, Pan-African Investment and Research

We have created a storm in a tea cup as if we have not got enough issues. This is not a real issue.

Dr Iraj Abedian, Chief economist, Pan-African Investment and Research

He says it is also irrelevant from an investment point of view.

What would it change, two million shares, lets say we buy it at R10, 20 million shares, R 20 million...and that has been nationalised. What else has changed tomorrow morning? nothing, government is the same, monetary policy is the same.

Dr Iraj Abedian, Chief economist, Pan-African Investment and Research

This is not the route to either transformation or anything of substance, this is just symbolic creation of controversy, posturing...

Dr Iraj Abedian, Chief economist, Pan-African Investment and Research

The functionality and the governance or mandate of the reserve bank is not a political party game.

Dr Iraj Abedian, Chief economist, Pan-African Investment and Research

Click on the link below to listen to the full analysis....


This article first appeared on 702 : Nationalising the Reserve Bank is irrelevant - economist


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