The NBS’s monetary policy priority will remain to deliver price and financial stability in the medium term, since in that way it also contributes to sustainable economic growth, and, by extension, to a further rise in employment and favourable investment environment.
As capital preservation represents one of the main pillars of the reserves management policy of the Bank, various steps have been taken to protect South Africa’s reserves from the instability and volatility experienced in these markets. Accordingly, counterparty risks, exposure to specific asset classes and the overall duration of the reserves portfolio were reduced, and the Bank’s conservative investment guidelines were tightened further.