Monetary economics

QUESTION 2 [20] Read the extract below and answer the question that follows: Why the ANC says it is putting the nationalisation of the Reserve Bank on hold Senior ANC leaders are set to put their plan of nationalising the South African Reserve Bank (SARB) on the back burner due to the major economic issues facing the country. Speaking in an interview with City Press, ANC treasury-general Paul Mashatile said that the party's leaders would have to be 'frank' about the challenges involved in implementing the nationalisation of the SARB. "Our resolution said two things: We want it (the SARB) to be state-owned but its mandate will remain. We have not moved decisively on the issue of nationalisation because it is a process that involves a lot of dynamics. There are private shareholders involved and the state must weigh up when and how to buy them out. We need to ensure a composite approach in our budgeting and spending, meaning that we must prioritise.So, the question is: Do you at this stage want to take money from the fiscus to buy out some shareholders or do you want to use that money for education or infrastructure?" Mashatile added that the ANC is currently "fine with the mandate of the SARB, its current independence, and the way it is playing its role. "The ownership issue will be resolved with time when we have a conducive situation to intervene," he said. Parliament officially revived the bill which proposes the nationalisation of South Africa's Reserve Bank in November 2019. In August 2018, the EFF tabled the South African Reserve Bank Amendment Bill, which seeks to nationalise the central bank. South Africa's central bank is one of the few in the world that's still owned by private shareholders. The draft bill provides for the following: The State as the sole shareholder of the shares in the Bank; The responsibility of the President of the Republic in consultation with the Minister of Finance and Parliament to appoint the Governor, Deputy Governors and all other directors of the Bank; and The role of the Minister of Finance as a shareholder to exercise the rights attached to the shares in the Bank. Source: https:/businesstech.co.zaewsbanking/374482/why-the-anc-is-putting-the-nationalisation-of-the-reserve-bank-on-hold/ Question Analyse the guiding principles of independence, accountability and transparency of a central bank. Also evaluate to what extent these principles apply within the South African context