SARB to buy government bonds as part of emergency measures

The South African Reserve Bank has introduced additional measures to manage liquidity in financial markets during the COVID-19 crisis. The bank says it would buy an unspecified amount of South African government bonds in the secondary market to take-up or absorb government debt and make it easier for commercial banks to fund their operations. According to Reuters, South Africa's bond market has been short of buyers since February and listed stocks have continued to plummet. Some economists say the move amounts to quantitative easing, something that should have happened even before COVID-19. Economic Advisor and Strategist, Dr Bheki Mfeka, who is also a former Adviser to the Presidency and currently the Founding Director at SE Advisory, chats to Morning Live on this.


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