The highly respected governor of the South African Reserve Bank, Dr Lesetja Kganyago, has been reappointed for another five-year term by President Cyril Ramaphosa, in what is seen as a move that will reassure markets. The move was quickly welcomed by many in financial markets.
Kganyago’s second term will start in November, it was announced today by the presidency.
Reuters reported that the rand was boosted by the news, with the rand 0.95% firmer at 14.0525 per dollar at 16h30 South African time.
Kganyago has recently found himself caught in a political battle over the bank’s obligations and future. As reported by SAPeople in June, a row over the functions of the Reserve Bank exposed divisions in the African National Congress. One faction was led by ANC Secretary General Ace Magashula, the other by Ramaphosa.
At the same time as Kganyago’s appointement, the two deputy governor positions, which became vacant in January and June, were filled by Nomfundo Tshazibana, who has worked at the International Monetary Fund, and the Reserve Bank’s Dr. Rashad Cassim.