South African Reserve Bank

About South African Reserve Bank

The South African Reserve Bank is the country's central bank; its purpose to protect the value of the currency, and to achieve and maintain financial stability.

Did you know? SARB has a board of directors consisting of a Governor, three Deputy Governors, and eleven Directors. The Governor, and Deputy governors are appointed for five-year terms by the President of the Republic of South Africa in consultation with the Minister of Finance.

Regarded as the highest building in Pretoria / Tshwane, with a basement that extends some 25 metres below ground (for very good reason; where better to place a vault or two), SARB (The South African Reserve Bank) is the country's central bank; its purpose to protect the value of the currency, and to achieve and maintain financial stability.

Its governor from 8 August 1999 to 8 November 2009, Tito Mboweni, is something of a celebrity. The eighth Governor of the South African Reserve Bank he was also one of the World Economic Forum's Global Leaders of Tomorrow and, aside from an obvious enthusiasm for fly fishing and soccer, has proved a prudent and reliable governor who approaches money with a solidness that has earned him much respect.

The Reserve Bank implements the country's monetary policy, guided on the one hand by its consideration of economic developments and on the other, its goal to achieve monetary stability. Thus the bank regulates both the cost of money and its accessibility.

The South African Reserve Bank is also custodian of most of South Africa's gold and foreign exchange reserves, controls the country's Mint Company and issues banknotes printed by the South African Bank Note Company, a subsidiary of the bank. The South African Reserve Bank also works with the general public, creating awareness campaigns such as the one warning of the perils of get-rich-quick schemes or pyramid schemes.

The South African Reserve Bank introduced a system of repurchase transactions, or repos, in 1998 as a way to manage liquidity in the money market. The repo rate is now the most important indicator for short-term interest rates, and is the price at which the central bank lends cash to the banking system.