Descriptions of how the subsidy works and examples of the funding advantages it confers are plentiful. But I believe that it is so ingrained in our thinking that we sometimes take it for granted.
This led to a gradual but dramatic decline in the Bank’s transactions in the bullion market. Notwithstanding this, the Bank continues to be keenly interested in the health of the bullion market. This is by virtue of South Africa’s significant gold reserves both in the vaults and underground.