Politics

#SONA2019: Ramaphosa and ANC agree on Reserve Bank, says Magashule

#SONA2019: Ramaphosa and ANC agree on Reserve Bank, says Magashule

Parliament - ANC secretary-general Ace Magashule on Thursday said he supported President Cyril Ramaphosa's commitment to the independence of the South African Reserve Bank, which Ramaphosa announced during his State of the Nation Address.

"It is in line with what the ANC has been saying, it is in line with the resolutions of the ANC and I think the president has given clarity to the country," Magashule said on the steps of Parliament. 

Magashule's statements come after a week of growing signs of internal conflict between Ramaphosa and a faction in the ruling party - led by Magashule - seen as hostile towards the president's renewal plans.

The faction has led a drive for the mandate of the bank to be amended to focus on developmental objectives.

In his speech, Ramaphosa said that in the face of severe economic challenges, it was vital to protect the independence of the bank.

"[O]ur Constitution mandates the South African Reserve Bank to protect the value of our currency in the interest of balanced and sustainable growth. Today we reaffirm this constitutional mandate, which the Reserve Bank must pursue independently, without fear, favour or prejudice," said Ramaphosa. 

He added, however, that there should be regular consultation between the finance minister and the governor of the bank to promote "macroeconomic coordination, all in the interests of employment creation and economic growth".

/ANA

* For more on President Cyril Ramaphosa's State of the Nation Address visit IOL's #SONA2019 trend page.