SARB is acting unconstitutionally

Why, if the constitution makes it clear that the primary object of the South Africa Reserve Bank “is to protect the value of the currency,” do they make it their ‘commitment to South Africans‘ to “achieve and maintain price stability.” The Rand has lost 90% of its purchasing power in 19 years, i.e. 90% of its value.  This is unconstitutional.

In terms of the SARB’s ‘commitment’ to us as South African citizens, the SARB has made it its mandate to depreciate the currency by between 3-6% against a broad basket of goods and services (the consumer price index) every single year.  This is hardly price stability and destroys South African citizens standard of living. It calls this ‘inflation targeting.’

Growing economies experience falling prices as the supply of goods and services increases relative to the supply of money, as the US and rest of western world experienced in the 19th century.

If the SARB follows this path of currency destruction it will lead to its ultimate destination which is hyperinflation.  Sad, but true.

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