The primary goal of the South African Reserve Bank (the Bank) is the achievement and maintenance of price stability. However, the role of the Bank in the economy goes beyond a narrow monetary policy focus. Low and stable inflation provides an important framework for economic growth, but regulation and supervision of parts of the financial sector, as well as the oversight of the payment system ensure that the wheels of theeconomy continue to turn efficiently. In the past year we have had to execute our mandate in an increasingly difficult and uncertain environment. The South African financial markets have not been spared the effects of the recent volatility in the financial markets and we have to be increasingly vigilant of the risks posed to the domestic economic landscape. At the same time we have to ensure good governance with respect to the internal workings of the Bank. It is against the backdrop of this volatile economic environment that I report to you today.Today we also release our Annual Economic Report which covers developments in the domestic and international economy over the past year. In particular, we highlight the main economic developments which have affected our operations and policy implementation. The focus of this address is on the main operational areas of the Bank including monetary policy and its implementation, gold and foreign-exchange reserves management, financial stability issues, the national payment system, banking regulation and supervision, international co-operation and internal administration.