Abstract
For numerous years some have held the view that the South African Reserve Bank wields too much power for a private institution and should be nationalised. Calls to amendment the section of the Constitution which grants the South African Reserve Bank its power and independence have long been a political discussion. These calls were highlighted by the 2017 Public Protector report calling for the amendment of section 224 of the Constitution and further by the Reserve Bank Amendment Bill 26 of 2018 which was brought by the Economic Freedom Fighters (EFF) political party.
Section 224 (1) of the Constitution sets out the purpose of the South African Reserve Bank as guarding the value of the South African currency in the interest of balanced and sustainable economic growth. Section 224 (2) of the Constitution goes even further and protects the independence of the South African Reserve Bank by stating that it should operate independently and without fear, favour or prejudice.
The aim of this dissertation will be to weigh the benefits and downfalls of nationalisation of the central bank, while also considering the constitutional, economic and political impacts thereof. Furthermore, an auxiliary objective is to conduct an examination on section 25 and 224 of the Constitution and their effects on the possibility of nationalisation. The final conclusion of this study will illustrate that the nationalisation of the South African Reserve Bank is unnecessary and redundant.