South African Reserve Bank (SARB) Governor Lesetja Kganyago says he will fight to protect the central bank’s independence if it is jeopardised by plans to bring it into public ownership.
Kganyago has been vocal in expressing concerns over plans by the ruling African National Congress (ANC) to nationalise the SARB, and some factions have also said that the bank should have an expanded mandate with a more specific focus on jobs.
The central bank governor says that he would not engage in internal ANC party squabbles, but he would strongly defend the Bank’s independence if it was threatened by any government proposals
“If it ends up happening and nationalisation takes place, what would we go to war about? When our independence is threatened, that’s when you will see us taking the fight,” he says.
Unlike most central banks in the world, the Reserve Bank is privately owned.
But, ANC members have said the people should have sovereignty over the bank, and at a party conference in 2017 the ANC resolved to move it into full state ownership, saying that its current status is an historical anomaly.
Click below to watch Lesetja Kganyago’s interview on Unfiltered speaking about the Reserve Bank’s mandate.