Deputy Finance Minister of South Africa requests central bank to create money

The South African government in the wake of the economic crisis as a result of the COVID-19 pandemic has been looking for possible solutions to cater to the needs, one being the request extended to the central bank to temporarily create money to fund the government response to the COVID-19 pandemic.

The South Africa’s Finance Deputy Minister, David Masondo requested the government to avert a 1930s-style depression by getting the central bank to buy government bonds directly to fund the country’s deficit during the coronavirus crisis.

David Masondo said, “Such bonds must be once-off special bonds with earned proceeds, and should be treated as a temporary measure with a clear exit plan… Such money from the SARB (South African Reserve Bank) must be used for immediate COVID-19 health-related interventions and … economic recovery measures.” The South African Reserve Bank Spokeswoman did not respond immediately.

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