The South African Reserve Bank (Afrikaans: Suid-Afrikaanse Reserwebank) is the central bank of South Africa. It was established in 1921 after Parliament passed an act, the "Currency and Bank Act of 10 August 1920," as a direct result of the abnormal monetary and financial conditions which World War I had brought. The SARB was only the fourth central bank established outside the United Kingdom and Europe, the others being the USA, Japan and Java.
Unlike the Bank of England, which provided the model for establishing the SARB, it has always been privately owned.
[edit] Functions of the South African Reserve Bank
The SARB controls credit and regulates the amount of money in circulation in the following ways:
- Increasing the discount rate in times of excessive spending;
- Lowering the discount rate in times of slack business and scarce money;
- Opening market transactions in times of excessive spending and rising prices;
- Opening market transactions in times of recession, when business is slack;
- Increasing cash reserves;
- Decreasing cash reserves;
- Disciplinary measures;
- Stabilising rates of exchange;
- Credit rationing;
- Bank of issue (The right to create money);
- Acting as the government's banker;
- Acting as a custodian of banks' cash reserves;
- Custodian of gold;
- Bank of rediscount; and
- Clearing bank.
[edit] List of Governors of the South African Reserve Bank.
[edit] See also
[edit] External links
Coordinates: 25°44′43″S 28°11′46″E / 25.74528°S 28.19611°E / -25.74528; 28.19611
