African central banks are working to link the continent’s major cross-border payment systems as plans to create the world’s largest free-trade zone gain momentum.
Removing policy uncertainty in South Africa, allocating new broadband spectrum and changing visa regulations could immediately boost the country’s flagging economy, Reserve Bank deputy governor Kuben Naidoo said.
South Africa’s annual inflation rate was unchanged at 4.5% in June, staying where the central bank wants the rate anchored.
The South African Reserve Bank cut its benchmark interest rate for the first time in more than a year as it almost halved its economic growth forecast for the year.
South Africa’s economy remains stuck in its longest downward cycle since 1945, adding to the risk that it may fall into its second recession in a year.
South Africa’s central bank won’t bail out the country’s troubled state-owned companies including power utility Eskom because it would fuel inflation, the governor, Lesetja Kganyago, said.
The South African Reserve Bank increased its benchmark interest rate for the first time in more than two years as it sees inflation risks staying elevated.
MTN Group’s fight with Nigerian authorities over $10-billion in repatriated funds and back taxes could increase risk in South Africa’s financial system depending on the outcome, the Reserve Bank said.
South Africa will strive to allow competition into its banking system in a way that won’t threaten the stability of the industry as more and more entrants seek to rival the nation’s biggest lenders.
The Reserve Bank pioneered Project Khokha to drive consensus and adoption of blockchain systems in South Africa’s financial sector, a highly proactive action similar to other astute emerging markets such as Dubai and Singapore.