Financial Markets

The task of implementing monetary policy decisions is undertaken by the Bank’s Financial Markets Department.

It does so through a range of refinancing operations conducted with commercial banks which are executed at or with a spread to the repurchase (repo) rate. The Department also conducts a range of open market operations to influence liquidity in the money market. Operations are undertaken in the domestic and foreign exchange markets. The latter include foreign exchange transactions conducted on behalf of clients or to accumulate foreign reserves.

The Financial Markets Department is also responsible for the management of the official gold and foreign exchange reserves in accordance with criteria set out in the Bank’s Investment Policy and Guidelines. Reserves play a key role in ensuring that the country will be able to:

cover its external operational needs;
service its foreign exchange liabilities;
cover any foreign currency net imbalances in the balance of payments; and
maintain market confidence in its monetary and exchange rate policies.

Jibar: Post-trade disclosures

The SARB is the administrator of the Johannesburg Interbank Average Rate (Jibar), which is widely used as a reference rate that underpins a significant number of financial contracts and valuations.
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