{"id":265939,"date":"2018-08-19T07:11:02","date_gmt":"2018-08-19T05:11:02","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=265939"},"modified":"2018-08-19T07:11:02","modified_gmt":"2018-08-19T05:11:02","slug":"this-is-what-could-happen-to-south-africa-and-the-rand-if-the-reserve-bank-is-nationalised","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/finance\/265939\/this-is-what-could-happen-to-south-africa-and-the-rand-if-the-reserve-bank-is-nationalised\/","title":{"rendered":"This is what could happen to South Africa and the rand if the Reserve Bank is nationalised"},"content":{"rendered":"<p>Reserve Bank governor Lesetja Kganyago has warned that nationalising the Reserve Bank could have dire consequences for the rand and the country&#8217;s economy.<\/p>\n<p>Speaking to the <strong><a href=\"https:\/\/www.businesslive.co.za\/bt\/business-and-economy\/2018-08-18-crisis-in-turkey--a---warning-to-sa\/?&amp;external\" target=\"_blank\" rel=\"noopener\">Sunday Times<\/a><\/strong>,\u00a0Kganyago said that\u00a0central cause of Turkey\u2019s financial crisis &#8211; which has fed fears it would spread to other emerging-market economies such as South Africa this week &#8211; was its loss of credibility.<\/p>\n<p>&#8220;(Those) who think that they would like to meddle in a central bank, they only need to look at Turkey and see what the consequences of meddling with a central bank are,&#8221; he said.<\/p>\n<p>He added that\u00a0raising rates is the only tool central banks have to protect the value of a currency.<\/p>\n<p>\u201cYou can look at Argentina too, where the meddling with a central bank led to a collapse in their currency,&#8221; Kganyago said, citing the fact that the Argentine peso is 37% weaker against the dollar and the country has sought an IMF rescue package.<\/p>\n<p>Turkey&#8217;s crisis had a direct impact\u00a0 on South Africa and the rand this week, with the currency flirting with the R15.00\/dollar several times.<\/p>\n<p>The rand came under renewed pressure in mid-day trade on Friday, caught in a trap of broad emerging market frailty, while the local economic outlook remains gloomy with some analysts suggesting that the country may be entering a recession.<\/p>\n<p>Bloomberg reported that the crisis in Turkey has the emerging world bracing for a bear market and central bankers staring down fresh complications.<\/p>\n<p>It noted that the Turkish lira weakened further on Friday after US Treasury Secretary Steven Mnuchin said the country would face more sanctions if it didn\u2019t release a detained American clergyman.<\/p>\n<p>In South Africa, the median prediction by 22 respondents in a Bloomberg survey found that the average gross domestic product will be 1.4% this year, some way below president Cyril Ramaphosa\u2019s hopes of lifting economic growth to 3% in 2018.<\/p>\n<hr \/>\n<p><strong>Read:\u00a0<a href=\"https:\/\/businesstech.co.za\/news\/banking\/265757\/rand-back-under-pressure-as-it-targets-r15-00-vs-the-dollar\/\" target=\"_blank\" rel=\"noopener\">Rand back under pressure as it targets R15.00 vs the dollar<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Reserve Bank governor Lesetja Kganyago has warned that nationalising the Reserve Bank could have dire consequences for the rand and the country&#8217;s economy.<\/p>\n","protected":false},"author":10,"featured_media":114834,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11121],"tags":[26],"class_list":["post-265939","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/265939","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=265939"}],"version-history":[{"count":6,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/265939\/revisions"}],"predecessor-version":[{"id":265951,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/265939\/revisions\/265951"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/114834"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=265939"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=265939"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=265939"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}