“Such money from the SARB (South African Reserve Bank) must be used for immediate COVID-19 health-related interventions and ... economic recovery measures,” he added. SEE ALSO: We must embrace own products to grow manufacturingA central bank spokeswoman did not immediately respond to a request for comment. South Africa’s finance deputy minister was quoted in a leading newspaper on Sunday as urging the central bank to temporarily create money to fund the government response to the COVID-19 pandemic and its economic fallout. A central bank spokeswoman did not immediately respond to a request for comment. But the idea of the central bank purchasing government debt directly to fund the deficit would most likely cross a red line for Finance Minister Tito Mboweni, a fiscal conservative who believes in central bank independence.

Source: Standard Digital May 04, 2020 15:11 UTC