While sticking to the policy of not targeting the exchange, a much healthier position with regard to the level of foreign exchange reserves places the Bank in a better position to smooth abrupt movements in the foreign exchange market should conditions warrant in future.
Of course some old lessons remain, namely that controlling inflation at lower and stable levels continues to be of paramount importance to central banks, given its vagaries and distortive and erosive effects. Questions are often asked as to why South Africa does not instead target employment.