Monetary policy, however, could not avoid, and should not have tried to prevent, the painful but essential market adjustment process. With hindsight, South Africa came out of the global financial crisis of 1997/98 relatively well, but not without some scars.
In three areas, the South African economy showed its strength and resilience: • Unlike in many other countries, South Africa’s financial system managed to survive the turbulences of 1997/98 without any major failure. • South Africa became an exception to the emerging market world by not approaching the IMF for any special financial assistance.