Economics
Battle Over South African Central Bank's Role Spooks Rand
- Finance minister backs current policy on currency, inflation
- Governor says Reserve Bank cannot bail out state-owned firms
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A fight is brewing over South Africa’s central bank and Governor Lesetja Kganyago is ready for it, flanked by his finance minister and the head of the ruling party’s economic policy.
The rand was the worst performer among major and emerging-market currencies Wednesday amid confusion over whether the African National Congress is pushing to change the central bank’s mandate and to use the institution to rescue state-owned companies. While Secretary-General Ace Magashule said its role must be expanded, Finance Minister Tito Mboweni and the ANC’s head of economic transformation, Enoch Godongwana, said no resolutions were made on the central bank at a party meeting last weekend.