At the same time, some modest signs of slower wage and unit labour cost growth have also emerged in the past year or two. However, some several of South Africa’s fundamentals are fragile enough to keep the country at risk of portfolio flow reversals in periods of rising risk aversion. Among those is the persistence of ‘twin deficits’.
Under the agreement, if a central bank buys domestic government securities for its own financial assets, the Eurosystem will buy less if that is necessary to make sure the above mentioned limit is not violated. The whole ANFA debate is thus a pointless distraction. 6  BIS central bankers’ speeches