Sign in
Download Opera News App





Foreign exchange

OPINION|| Reasons Why SARB Cannot Print Money And Distribute To South Africans

Many people have asked why the SARB (South African Reserve Bank) does not simply print millions of rands or dollars and distribute it to the citizens. It is easier because they have a printing company, and we do not need to borrow money from outside. You can't do it!

Given the current state of the country, it would be ideal if SARB accepted responsibility for this, but this is not possible for the reasons stated in this article. To avoid being mislead, please read this post carefully and share it with others.

The creation of the national currency is the duty of the SARB, which has led many South Africans to wonder why the SARB does not print a large amount of money to distribute to its residents. The reasons include;

1. Unfavorable Trade Balance - If you want to make a lot of money, demand outnumbers supply. Few people desire to produce and many people merely want to buy because they have money. In this case, cubic sugar may reach R50 because the corporation only raises the price of its products for people who can afford it.

2. Currency Devaluation - Currency devaluation is a term used in the business world. The rand devalues when there is a large amount of money in circulation. There have been concerns that the dollar has risen above R15, although few are aware that this is attributable to an increase in money circulation. Money's scarcity is one of the characteristics that makes it valuable.

3. International Monetary Fund regulations - The International Monetary Fund is in charge of regulating the annual amounts printed by each country in accordance with state permits. This is done to keep a country's currency from depreciating and inflating.

This forced SARB to reduce the quantity of money created each year in order to comply with IMF currency printing standards and, in the worst-case scenario, have their printing license revoked.

Read more here

Content created and supplied by: Jaskier (via Opera News )

SARB South African Reserve Bank


Load app to read more comments