Question

Discuss the main functions of the South African Reserve Bank

Answer 1

Main Functions of the South African Reserve Bank

The South African Reserve Bank (SARB) was established in 1914,and is located in Pretoria,South Africa.

The main functions of the South African Reserve Bank include:

> One of the most important functions of The South African Reserve Bank is to maintain a balanced economic growth of the country thus protecting the value of the South African currency in the international market.

>Formulating and implementing Monetary policy in South Africa.The banks Monetary policy committee implements required monetary policy to control inflation and regulates the supply of money in the South African economy.

>It manages the public debt and undertakes open market operations as and when required.

>The South African Reserve Bank issues currency in the country which includes both bank notes as well as coins.

>The South African Reserve bank conducts national and international transactions,and it acts for the government while dealing with the International Monetary Fund.

>It is the custodian for a major part of South Africa's gold as well as other foreign exchange reserves.