South African Reserve Bank

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.

RELATED TERMS
  1. ZAR (South African Rand)

    The currency abbreviation for the South African rand (ZAR), the ...
  2. Brazil, Russia, India, China And ...

    An acronym for the combined economies of Brazil, Russia, India, ...
  3. Eurocurrency

    Currency deposited by national governments or corporations in ...
  4. Lion economies

    A nickname given to Africa's growing economies.
  5. Central African CFA Franc - XAF

    The currency of six independent states in central Africa. The ...
  6. African Development Bank - ADB

    A financial institution comprising 53 African and 24 non-African ...
Related Articles
  1. Bonds & Fixed Income

    African Equities vs. Bonds: Risks and Rewards

    A look at the risks and rewards of exposure to African equities vs. bonds.
  2. Forex

    South African Rand

    A closer look at the South African rand
  3. Economics

    What are Lion Economies?

    Lion economies is the nickname for Africa’s growing economies.
  4. Mutual Funds & ETFs

    4 ETF Strategies for Growth in Africa for 2016 (EZA,EGPT)

    Invest in the African region with these four methods that outline the ETFs on the market. Learn about ETFs for investing in individual African countries.
  5. Active Trading Fundamentals

    The 3 Reasons Why Chinese Invest in Africa

    Learn about the increasing level of foreign direct investment by China in Africa, and understand the major reasons for China's African investments.
  6. Investing

    Africa's Rapid Tech Advancement Drawing Investors

    The rapid adoption of technology, and the proliferation of startups, in Africa have created excellent investment opportunities.
  7. Mutual Funds & ETFs

    EZA: iShares MSCI South Africa ETF

    Learn more about the iShares MSCI South Africa fund, which is an NYSE-listed exchange-traded fund offered and managed by BlackRock.
  8. Investing

    Top BRIC-related ETFs

    Interested in playing the BRICs? Then check out these popular ETFs.
  9. Bonds & Fixed Income

    African Sovereign Debt: Risks and Rewards

    African sovereign debt offers high yields and upside — if one has the stomach for the risk.
  10. Mutual Funds & ETFs

    (AFK, EZA, GAF) 3 Best Africa ETFs for 2016

    Explore detailed analysis of the top three exchange-traded funds that track the African companies, and learn the type of investors these ETFs and suitable for.
RELATED FAQS
  1. How does the balance of trade impact currency exchange rates?

    Find out how the balance of trade affects a country's exchange rates and how those exchange rates can, in turn, affect the ... Read Answer >>
  2. How do central banks acquire currency reserves and how much are they required to ...

    A currency reserve is a currency that is held in large amounts by governments and other institutions as part of their foreign ... Read Answer >>
  3. How are bank reserve requirements determined and how does this affect shareholders?

    Learn how bank reserve requirements are determined and how bank reserves affect shareholders through improved bank stability ... Read Answer >>
  4. What do banks do to control the bank reserve?

    Understand what the Federal Reserve does in order to expand or contract the economy. Learn what depository institutions can ... Read Answer >>
  5. Is there any way to check the historical rates of different currencies?

    Yes, you can create a daily price chart of different currencies going back many years. Price charts can be found on the internet ... Read Answer >>
  6. What happens if the Federal Reserve lowers the reserve ratio?

    Learn about the Federal Reserve's monetary policy and the tools it uses to control it. Understand what happens if the Federal ... Read Answer >>
Hot Definitions
  1. Goodwill

    An account that can be found in the assets portion of a company's balance sheet. Goodwill can often arise when one company ...
  2. Return On Invested Capital - ROIC

    A calculation used to assess a company's efficiency at allocating the capital under its control to profitable investments. ...
  3. Law Of Demand

    A microeconomic law that states that, all other factors being equal, as the price of a good or service increases, consumer ...
  4. Cost Of Debt

    The effective rate that a company pays on its current debt. This can be measured in either before- or after-tax returns; ...
  5. Yield Curve

    A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center