The DA urges President Jacob Zuma to move swiftly to appoint a strong hand at the helm of South Africa’s Reserve Bank following Gill Marcus’ announcement that she would not be available for another five-year term as Reserve Bank Governor.

Ms Marcus, well respected in banking circles and who steered South African monetary policy through the 2008 global financial crisis, is to be commended for her work at the helm of the Reserve Bank. She has faced unprecedented challenges and has done what was possible within her limited powers to aid our economy.

With the term of the existing Governor of the bank coming to an end, the President must apply his mind as quickly as possible to appoint a worthy successor to take on this difficult role. Quickly picking a strong candidate will also greatly help in reassuring markets that South Africa’s banking system remains stable.

Ms Marcus does not leave the Bank without its share of problems. The next Governor will face serious challenges:

• The Bank will continue to struggle to reign in inflation, which is expected to average 6.2% this year and is expected to remain just outside the target band for inflation;
• Monetary Policy will be under enormous pressure as we continue to experience relative stagflation, with low economic growth rates and relatively high inflation; and
• The African Bank matter has not yet been put to rest, as the role of the Reserve Bank and the NCR will surely come under more scrutiny in the foreseeable future.
• The President must ensure that Marcus’ replacement will carry the confidence of the markets with him or her.  
• The DA looks forward to the President’s announcement.

Issued by the DA