HIGHLIGHTS
AVERAGE INFLATION RATE
4.7%
within the 3–6% target range.
No systemic risk events in the financial system.
All significant financial institutions
met or exceeded the quantitative prudential standards, having sound governance, compliance and risk management practices.
GROWTH IN FOREIGN RESERVES
US$3.4 billion
2016/17: US$0.2 billion decrease
Implemented the cash
management strategy,
including a demand-driven cash
replenishment model.
GROUP PROFIT BEFORE TAX
R3.2 billion
2016/17: R2.1 billion
Read the full performance overview
GOVERNOR’S MESSAGE
“…the SARB remained focused on its primary
objectives to achieve and maintain price and
financial stability.”
Governor Lesetja Kganyago’s message provides an overview of key highlights
and the SARB’s performance in achieving and maintaining price and financial
stability over the year.
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ABOUT
THE SARB
THE SARB IS THE
OLDEST CENTRAL BANK
IN AFRICA AND ITS
PRIMARY MANDATE AND
INDEPENDENCE ARE
ENTRENCHED IN THE
CONSTITUTION OF
THE REPUBLIC OF
SOUTH AFRICA.
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THE SARB IS MANDATED BY:
THE CONSTITUTION
The South African Constitution prescribes
the primary mandate of the SARB, which is
to protect the value of the currency in the
interest of balanced and sustainable economic
growth.
to achieve and maintain price
stability, which contributes towards the
stability of the entire financial system.
Read more about monetary policy
THE FINANCIAL SECTOR REGULATION ACT
Through the Prudential Authority, the Financial Sector Regulation Act expands the SARB’s regulatory responsibility beyond licensed deposit-taking institutions.
to protect and enhance financial
stability in South Africa.
Read more about financial stability
IT ACHIEVES THESE RESPONSIBILITIES BY:
maintaining the consumer price index (CPI)
within a target of 3–6%.
The South African Government, in consultation
with the SARB, sets an inflation target which
serves as a yardstick against which price
stability is measured. The SARB can
independently use any instruments of monetary
policy at its disposal to achieve this goal.
01
monitoring the financial system.
02
mitigating risks to financial stability.
03
restoring or maintaining financial stability
if a systemic event occurs or is
imminent.
THIS SERVES THE ECONOMIC WELL-BEING OF SOUTH AFRICANS THROUGH:
a monetary policy stance that provides a
low and stable inflation environment.
This:
>
protects the purchasing power and living
standards of all South Africans, particularly
the poor;
>
supports sustainable and balanced economic
growth;
>
contributes to South Africa’s ability to create
employment;
>
facilitates general trust in the value of the
rand and provides a favourable environment
for investment in South Africa; and
>
helps to maintain and improve South Africa’s
international competitiveness.
a stable and safe financial system.
This:
>
is an important precondition for sustainable
economic growth and development, and
employment creation;
>
contributes towards the system’s resilience to
vulnerabilities and shocks; and
>
promotes efficient financial intermediation
through sound financial institutions and
market infrastructures.
OUR REPORT
About this report
The SARB’s annual report provides readers with a holistic account of the SARB’s strategy, performance and impact on society. It therefore contains financial and non-financial information that is material to the SARB’s ability to sustainably implement its mandate.
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