When foreign funders suddenly refused to finance these deficits, crises resulted. Could a sudden stop happen here? We consider it unlikely. Partly, this is because world monetary policies are likely to normalize slowly, with very low rates likely to persist for several years in the United States, the Euro Area and Japan. Perhaps more importantly, South Africa’s vulnerabilities are manageable.
The efforts to prevent and crack down counterfeiting banknotes have been stepped up into the stage of systematic, scientific and refined management. The Digital Currency Research Institute has been set up for in-depth digital currency R&D. The modern treasury system has been continuously improved. The PBC has performed its function of managing the treasury since its foundation.