At the end of February 2013, South Africa’s gross gold and foreign exchange reserves amounted to $ billion and the international liquidity position of $ billion.
If, in the end, funds must be injected to resolve a systemically critical institution safely, the ultimate cost must not fall on taxpayers or small financial institutions, but on those institutions that are the source of the too-big-to-fail problem. I don’t want to understate the difficulties of creating an effective resolution framework for large, interconnected firms.