DEFINITION of 'South African Reserve Bank'
The South African Reserve Bank is the reserve bank of the Republic of South Africa. Its functions include the formulating and implementing of South Africa's monetary policy, ensuring the efficiency of South Africa's financial system and educating South Africa's citizens about the monetary and economic situation of the country. Unlike the reserve banks of most commonwealth nations, the South African Reserve Bank has always been privately owned.
BREAKING DOWN 'South African Reserve Bank'
The South African Reserve Bank was established in 1921 by South Africa's parliament with the Currency and Banking Act of 1921. Prior to the establishment of the reserve bank, South Africa's currency was handled by commercial banks. The South African Reserve Bank is governed by a board of fourteen members which include the governor, three deputy governors, three directors who are appointed by the president and seven members who represent the seven top industries in the country including agriculture, commerce and finance.