JOHANNESBURG – The South African Reserve Bank (SARB) has cautioned that plans to nationalise the bank will put the country&39;s economy at risk.
SARB was responding to the ANC&39;s resolution that it took at its 54th National Elective Conference to nationalise the bank.
On the last day of the conference on Wednesday, ANC&39;s Economic Transformation Committee announced that the party had adopted this resolution and that private shareholding at the bank should be scrapped.
“The South African Reserve Bank is of the view that the process of changing the ownership structure of the SARB at this point in time could raise the level of risk and uncertainty for the country in both a financial and economic policy sense. This heightened exposure to risk is unwarranted given the country&39;s fragile economic situation,” the central bank said in a statement.
The central bank also cautioned that such a move would be costly.
“Nationalising the SARB would also be expensive as its shares currently trade for much less than the price at which some existing shareholders are willing to sell their shares. The "buying-out" of existing shareholders will therefore result in paying large sums of money to effect cosmetic changes that will have no bearing on the manner in which the SARB carries out its mandate or executes its policy responsibilities,” it added.