The Bank does not aim to influence the exchange rate of the rand, but leaves its determination to the forces of demand and supply in the foreign exchange market. The Bank continued to take advantage of favourable market conditions to increase the level of official gold and foreign exchange reserves.
The case for monetary policy independence By 1994, both theory and evidence suggested that more independent central banks deliver better outcomes, particularly lower and more stable inflation. The theoretical case for monetary policy independence focused on countering inflationary biases that were likely to exert themselves in the absence of an independent central bank.