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September 2020 – Note on recent developments in money creation in South Africa
Published Date:
2020-09-29
Last Modified Date:
2020-11-21, 01:37 PM
Category:
Publications > Quarterly Bulletins Articles and Notes
The coronavirus disease 2019 (COVID-19) pandemic has highlighted the role of money and its relationship to price developments in the economy. Central banks create money through increases in banknotes and coin in circulation, while the deposits of private sector banks held at the central bank also add to the monetary base1, which supports the expansion of credit and broad money.