Debating Nationalisation of South African Reserve Bank: Costly Consequences Ahead
The article discusses whether the South African Reserve Bank should be nationalised. It compares the historical backgrounds of three central banks: South Africa, Australia, and the Netherlands. The South African Reserve Bank is currently owned by private shareholders, while the Reserve Bank of Australia is government-owned and De Nederlandsche Bank was nationalised in 1948. The potential nationalisation of the South African Reserve Bank would be costly and may not bring significant benefits. The Bank's responsibility for monetary policy would remain the same even if it is nationalised. The article recommends against nationalising the South African Reserve Bank due to the high cost and limited benefits.