Introduction We live in an ever-changing global environment, an environment that is characterised by opportunities and hope, but also fraught with risks. In this environment the South African Reserve Bank (Bank) must implement its mandate and manage the associated risks to ensure that South Africans benefit from opportunities emanating from a changing world. Today, I am pleased to report on another successful year in the eighty-five-year history of the Bank.The achievement and maintenance of price stability remains the primary objective of the Bank. Indeed, the most significant accomplishment of the Bank has been the containment of inflation within the target range since September 2003. This does not imply that the other functions of the Bank are neglected. On the contrary, these remain crucial in the operations of the Bank. Today we also release our Annual Economic Report which covers the broader aspects of the domestic and international economy that impact on many of the activities of the Bank. This address will highlight, where relevant, some of the salient economic developments which have affected our operations. The focus of this address is on the main operational areas of the Bank including monetary policy, monetary operational procedures, gold and foreign exchange reserve management, the national payment system, banking regulation and supervision, international co-operation and internal administration.