Answer to Question #130368 in Macroeconomics for Kone mulalo

Question

During this COVID‐19 pandemic, the South African Reserve Bank (SARB) plays a crucial role in maintaining financial stability.  

Describe the roles that the SARB can play to ensure the objective of financial stability is met.

Answer 1

The South Africa  Reserve Bank (SARB) is actively involved in the marketing of

South Africa’s gold production. The main functions of the Reserve Bank are as follows :

(A) The issuing of banknotes and coin;

(B) acting as banker to the government;

(C) acting as a bank to other banks;

(D) providing facilities for the clearing and settlement of claims between banks;

( E) acting as custodian of the country’s gold and other foreign reserves;

(F) acting as “bank of rediscount” and “lender of last resort”;

(G) engaging in public debt management and open-market operations;

(H) collecting, processing and interpreting economic statistics and other information, and

(I) formulating and implementing monetary policy