S.Africa’s rand weakens 1.5 pct after watchdog comments over cenbank

South Africa’s rand fell more than 1.5 percent on Monday after Public Protector Busisiwe Mkhwebane recommended changes to the constitution to force the central bank to promote economic growth rather than currency and price stability.

By 1222 GMT, the rand was trading 1.44 percent weaker to the dollar at 12.9900, having hit 13.0075.

Mkhwebane said at a news conference that the primary objective of the South African Reserve Bank should be to promote balanced and sustainable economic growth, rather than to target inflation, as it is now.

It is unclear why Mkhwebane, a constitutionally mandated anti-corruption watchdog, should have made the comments, which alarmed currency traders.

“They want to initiate changes to alter the primary objective of the Reserve Bank. Some of the suggestions being to remove the reference to protect the value of the currency and all this has caused a knee-jerk reaction,” said Andre Botha, Treasury One currency dealer.

(Reporting by Tanisha Heiberg and Olwethu Boso; Writing by James Macharia; Editing by Ed Cropley)


Partner Content

THE FUTURE JUST ARRIVED: THE ROLE OF BANKS IN A POST-COVID WORLD

THE COVID-19 GLOBAL pandemic has brought forward the future. It has brought about humanity’s biggest challenge in a century, to choose between...

Mauritius-Africa, a partnership for shared prosperity

By: Mathieu Mandeng In the current complex and challenging circumstances that are testing the...

VIRTUAL VDJ EXPOSES LOCAL CREATIVE AND ENTERTAINMENT INDUSTRY

The City of eThekwini pulled out all stops to give fans of the annual Vodacom Durban July (VDJ). The Virtual Vodacom Durban...

GAUTRAIN – Why It Matters

Economic growth continues to be one of the focus areas for the Gauteng Provincial Government (GPG) and the Gautrain responds to that...

Trending Now

South Africa tries to recover over $23 mln from SAP for ‘unlawful’ contracts

JOHANNESBURG (Reuters) - South African investigators are seeking to recover more than 400 million rand ($23 million) from German software firm SAP...

A generally positive trading week for the NSE

It’s been a largely positive trading week in Nigeria’s stock market. As company financial statements continue to filter into the market, Muktar Mohammed, Analyst at Assar Investments joins CNBC Africa to discuss how investors are pricing in the earnings....

Ecobank CEO on how COVID-19 has impacted the company’s first half earnings

Ecobank reported an 18 per cent decline in its profit-after-tax to 48.5 billion naira for the first half of the year. As the stock market prices in the result, the bank’s Group CEO, Ade Ayeyemi joins CNBC Africa for more.

Gautrain: MEC Mamabolo on achieving smart mobility & Gautrain’s public transport objectives

Why it matters to have a rail system such as Gautrain as the backbone of the public transport system in Gauteng. In this episode of Gautrain: Why It Matters, Gauteng MEC for Public Transport and Roads Infrastructure, Jacob Mamabolo about public transport and Gautrain's objectives....

Subscribe to our newsletter

Sign up for free newsletters and get more CNBC AFRICA delivered to your inbox

- Advertisement -