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The year 2021 marks 100 years of existence of the South African Reserve Bank (SARB). It is my honour to share with you this publication, which is an informative exposition of the SARB’s journey and role in South African life over the past century.
Given the centrality of banking and finance to human progress – and how societies have and continue to organise themselves – this book is a reflection of South Africa’s complex history as a backdrop to the role the SARB has played during the past 100 years.
Contrary to only focusing on what a central bank is expected to do, which is to produce work mostly economics experts can relate to, in this volume we took a conscious decision to make the retelling of the SARB’s history accessible and relatable.
As we face a future where the use and value of banknotes and coin may be that of souvenirs and museum pieces, it is important to remember that the introduction of money to our country was fundamentally to fuel colonial expansion and conquest. That expansion meant dispossession, displacement and poverty for most South Africans, while it unearthed wealth accumulation and comforts for a few.
Our country’s story is one of colonialism, war, suffering, resilience and struggle, but in the past three decades also one of hope for a brighter future, central to which is prosperity for all its people. That story – our history – and the hopes embodied in the Constitution of the Republic of South Africa are a weight all of us who work for the SARB feel enormously honoured to bear. Both are woven into the fabric of every consideration and decision we make because we fully appreciate that what we do at the SARB has a profound impact on the lives of ordinary South Africans.
We are also cognisant that we are part of an institutional framework whose purpose is to ensure that our national affairs are so organised as to facilitate the ideals and dreams of our people. This means that we rely on other public and private institutions to play their role with the same diligence as they expect when looking to the SARB to fulfil its duty.
In light of the significance of our mission, allow me to share with you our business philosophy, upon which are many unwritten guiding principles anchoring the SARB’s approach to its work, and the individual conduct and work ethic of its staff.
Our business philosophy states:
“The Bank accepts that the credibility of its policy and actions is a prerequisite for the attainment of its goals and that such credibility can only be achieved and maintained through independent action, firmness of principle, resoluteness and fixed intent.
The Bank ensures, through the application of modern management practices and technology, that all its activities are conducted effectively and efficiently.”
The first principle is the centrality of integrity to the credibility of the SARB. Our constitutional laws allocate to the institution wide latitude to regulate its own affairs and to make decisions that are free of interference by anyone outside the institution. We are grateful that while the South African people robustly debate and contest our work, they equally accept that we must be given sufficient room to fulfil our constitutional mandate. This is an act of trust we do not take lightly, and the only way we can continue to earn it is through fidelity to the interests of our nation.
Second, we strive to act with diligence at all times. Because the decisions of the SARB can sometimes alter the overall course of our country, it is important that these are considered on the basis of facts and the dispassionate consideration thereof. The SARB’s staff know to be careful, thorough and deliberate in their actions so that we can limit the possibility of costly mistakes or ill-considered decisions.
The third principle is always to follow the law without fear or favour in the execution of our constitutional and regulatory mandates. The South African people have to trust us to treat every one of our stakeholders and the public with fairness so that our less popular decisions may have the credibility the SARB needs to do its work effectively.
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