“New SARB Governor must nationalise bank”

SARB governor, Lesetja Kganyago

SARB governor, Lesetja Kganyago

JOHANNESBURG – THE Congress of South African Trade Unions called for policy reforms following the appointment of new governors for the central bank.

This follows the retirement of Gill Marcus.

“COSATU congratulates its former employee, Comrade Lesetja Kganyago, on his appointment as the new governor of the South African Reserve Bank (SARB) and wishes him well.

“His appointment however must represent a fundamental change, not just in personalities but in policy,” said union spokesperson, Patrick Craven.

“He must radically change the disastrous policies of his predecessors, which, together with those of the Treasury, have been one of the main reasons for our painfully slow rate of economic growth, the loss of thousands of jobs and the failure to implement government and ANC policies to radically restructure our economy and create decent jobs.”

In particular, the new governor must change the policy of seeing ‘inflation’ as the main threat, and using this to justify high interest rates, even at a time when many other countries are reducing them to as low as zero, Craven said, adding the resultant high cost of repaying loans has caused many small and medium businesses to fail and increased the cost of starting up new companies.

“While rising inflation is a potential danger, it is far less of a danger than our massive triple challenge of unemployment, poverty and inequality.”

He said as such, the central bank’s strategy must be changed from ‘inflation-targeting’ to ‘employment targeting’.

“Finally Kganyago must insist that the SARB be nationalised. It is one of very few privately owned reserve banks in the world, and it is totally unacceptable that such an important institution should be privately owned and answerable to shareholders rather than to the government elected by the people of South Africa.”

– CAJ News





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Posted by on Oct 7 2014. Filed under Finance, Finance & Banking. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry
  • http://ramonthomas.com/ Ramon Thomas

    Whatever reasons we had before 1994 for a privately owned Reserve Bank, they cannot exist in the South Africa of 2014. Cosatu with EFF are probably the best candidates to push this decision onto Parliament and the South Africa president. However, they are fighting an uphill battle against International banking interests. So it may be a lost cause.

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