The South African Reserve Bank has recently completed the test phase of its own internal programme to ensure that the electronic technology used by the Bank is in all aspects Year 2000 compliant. All tests were successfully concluded and the Bank is satisfied that its normal business operations will not be threatened by any failure of its technology.Many of the Reserve Bank's activities obviously extend to the wider financial community, and the Bank's electronic system interfaces in many places, both within South Africa and abroad. The Bank has therefore developed contingency plans to address any unexpected problems that may still be caused by internal or external sources over which the Bank has no direct control.Despite all the arrangements made for a smooth transition, the Reserve Bank is aware of the fact that there may be a temporary increase in the demand for cash, particularly for banknotes, at the end of the year. The Bank will therefore ensure that adequate stocks of South African banknotes will be available through the banking system at the time. The Reserve Bank will discuss with banking institutions methods to supply in temporary special liquidity needs of the banks that may arise because of the Year 2000 problem. Within South Africa, the Bank's programme for compliance also covered the South African Multiple Option Settlement (SAMOS) System, the backbone of the banking sector's payment and settlement infrastructure. With the co-operation of the South African banking sector, this system has been tested and its compliance verified. The Bank is also satisfied that external technology-based financial systems and interfaces upon which it relies to conduct its normal day-to-day business, as far as the Bank can verify progress, are, or will be, compliant. For the purposes of overall financial stability it is, of course, essential that all banking institutions shall also make sure that their systems have been adjusted. The Registrar of Banks received full co-operation from South African registered banking institutions in this regard. A booklet on the Year 2000 preparations in the South African banking and financial sector will be issued by the Registrar's Office next month to reassure the public and the international community that the South African banking sector in total has taken suitable steps to correct and overcome any Year 2000 related problems, and has taken the necessary precaution to ensure that normal banking and financial operations will not in any way be disrupted by the Year 2000 problem.The Reserve Bank has taken note that the Cabinet has declared the 31st of December 1999 and the 3rd day of January 2000 as public holidays to allow for four non-working days over the year-end for final Year 2000 testing. This is in line with what many other countries already decided to do and will ensure that the country suffers the minimum possible level of disruption over this transition period. This additional opportunity should, of course, be used by every organisation in the country to verify compliance and to rectify unexpected and undetected Year 2000 problems that could perhaps surface on 1 January 2000. It must be remembered that, during the rectification process preceding 1 January 2000, all tests, no matter how thorough they were, were conducted on simulated year 2000 dates. The 1st of January 2000 will indeed be the first live experience.The Year 2000 "holidays" therefore provide an opportunity for all organisations to concentrate on final Year 2000 compliance verification without having to conduct business as usual. From a financial sector perspective, these days could be viewed as "no value dates", so that value will only once again be passed after Year 2000 compliance has been verified.It is expected that in most organisations the technologists, back office and engineering personnel and management will be working during the period 31 December 1999 to 3 January 2000. In fact, everybody who can participate in verifying that the technology operates properly, or who relies on technology in his or her daily wo