I would also like to share the progress the SARB has made and the methodologies it has applied in its approach to stress testing the South African banking sector. Stress testing forms part of the macroprudential monitoring framework applied by the SARB in fulfilling its now-expanded mandate of protecting and enhancing financial stability, in addition to its price stability mandate.
Prior to the advent of the euro in 1999, European authorities took deep and successful steps to stabilise cross-country exchange rates and eliminate controls on international capital movements within what is now the euro zone.