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South African Reserve Bank

Autonomy and Legal Framework 

At present, sections 223 to 225 of the Constitution of the Republic of South Africa, 1996; the South African Reserve Bank Act, 1991, and the regulations framed in terms of this Act, provide the enabling framework for the Reserve Bank's operations.  
The Bank enjoys a considerable degree of autonomy in the execution of its duties. In terms of section 224 of the Constitution, 1996, "the Bank, in pursuit of its primary object, must perform its functions independently and without fear, favour or prejudice, but there must be regular consultation between the Bank and the Cabinet member responsible for national financial matters." The independence and autonomy of the Bank are, therefore, entrenched in the Constitution, 1996.
The Bank has been entrusted with the overarching monetary policy goal of containing inflation and can use any instruments of monetary policy at its disposal to achieve this monetary policy goal. This implies that the Bank has instrument independence in monetary policy implementation, but not goal independence in the selection of a monetary policy goal.
The Governor holds regular discussions with the Minister of Finance, and meets periodically with members of the Parliamentary Portfolio and Select Committees on Finance.  In terms of section 32 of the Act, the Bank publishes a monthly statement of its assets and liabilities, and submits its Annual Report to Parliament.  The Bank is, therefore, ultimately accountable to Parliament.  
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