What is a South African reserve bank?
South African Bank is a central bank in South Africa. It dates back to 1921 and is among the oldest outside Europe. Unlike many central banks, the South African reserve bank is not directly checked by the government. Before this time, commercial banks could issue banknotes, but had to replace them for gold on request. This caused problems when speculators realized that they could exchange notes for gold in South Africa, and then sell gold in overseas, where the price of gold was higher. Since banks were obliged to hold gold to support their notes, banks had to buy gold from overseas and lose money on transactions. Today, the South African reserve bank meets more functions over the issue of banknotes. It provides a central government of some banking services. It also oversees the molding of government money between different banks. This can be used to check the amount of cash that every bank has at hand and thus control their liquidity.
Another function of the bank is to collect, interpret and invitejunction of economic data. It publishes quarterly bulletin and annual report along with occasional disposable documents. They are then considered official sources of data for research workers and decision -making on economic policy.
As with many central banks, the South African Reserve Bank is responsible for monetary policy. This involves performing activities intended to influence short and long -term money markets for loans and savings. The idea is that it in turn affects how much money is available for the purpose of the investment and at the same time keeps inflation under control.
South African reserve bank also holds a cash reserve of Komerční banka. It maintains the right to change the requirements for these reserves, the right that can be used as a tool for cash supply. The central bank is also responsible for the supervision of the system by which Komerční banka moves back and forth, for example,D When a customer writes a check payable to the customer of another bank.
In many countries, the central bank is completely or largely controlled by the national government. This is not the case of the South African Reserve Bank, which is constitutionally obliged to act independently of the government. However, it is necessary to consult regularly with the Minister of the Government responsible for the finances. The bank must also present the annual report of the South African Parliament and is therefore responsible for parliament rather than the government.