December 21, 2017 / 12:47 PM / a year ago

South Africa's central bank says nationalisation plan would be costly

JOHANNESBURG, Dec 21 (Reuters) - South African governing party’s plan to buy-out private shareholders of the central bank would be expensive as some existing investors are likely to sell their stakes at a premium, the regulator said on Thursday.

“The “buying-out” of existing shareholders will therefore result in paying large sums of money to effect cosmetic changes that will have no bearing on the manner in which the SARB carries out its mandate or executes its policy responsibilities,” the South African Reserve Bank said.

The ruling African National Congress on Wednesday adopted a resolution calling for the nationalisation of the central bank, whose shareholders have no control over monetary policy, financial stability policy or banking regulation. (Reporting by Olivia Kumwenda-Mtambo; Editing by James Macharia)

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