South African Reserve Bank
Mr Lesetja Kganyago
|Headquarters Pretoria, 0001|
|Currency Rand - ZAR (ISO Code )|
The South African Reserve Bank (SARB)is the central bank of the Republic of South Africa. The Bank was established in 1921 in terms of a special Act of Parliament, the Currency and Bank Act of 10 August 1920 (the Act) and was the direct result of the abnormal monetary and financial conditions which had arisen during and in the period immediately following World War I.
The SARB is the central bank of the Republic of South Africa. It regards its primary goal in the South African economic system as " the achievement and maintenance of price stability".
The SARB maintains that South Africa has a growing economy based on the principles of a market system, private and social initiative, effective competition and social fairness. It recognises, in the performance of its duties, the need to pursue balanced economic development and growth.
2. Vision (2010)
A domestically and internationally respected central bank contributing to a better life for all South Africans. The SARB is committed to achieve and maintain price stability in the interest of balanced and sustainable economic growth in the Republic. In the pursuit of its primary objective, the Bank must perform its functions independently, without fear, favour or prejudice.
The achievement of price stability is quantified by the setting of an inflation target by government that serves as a yardstick against which price stability is measured.
The achievement of price stability is underpinned by the stability of the financial system and financial markets. For this reason, the Bank is obliged to actively promote financial stability as one of the important determinants of financial system stability.
3. Functions of the SARB
Overview of the SARB’s functions
- Business philosophy
- Personnel philosophy
3.1 Banker and adviser to the Government
- Banker to the Government
- Administration of exchange controls
3.2 Provision of economic and statistical services
3.3 Management of the South African money and banking system
- Provision of liquidity to banks
- Banknotes and coin
- Banker to other banks
- Settlement of interbank claims
- Bank supervision
3.4 Provision of internal corporate support services and systems
3.5 Formulation and implementation of monetary policy
- Money and capital market operations
- Gold and foreign-exchange reserves