The Democratic Alliance (DA) welcomes the announcement by the Reserve Bank Governor, Tito Mboweni that he will make himself available to serve another term of office if asked to.

The DA would welcome the continuation of Mboweni's term of office in the new dispensation - for he has had an excellent record at the central bank; in particular, he has maintained the independence of the bank in a commendable fashion.

The Reserve Bank has throughout Mboweni's term created a stable, certain monetary policy environment, which to some extent has boosted investors' confidence in the economy.

Now, more than ever, South Africa cannot afford any policy missteps which will undermine confidence in the economy.  At a time when our economy is facing daunting socio-economic challenges, boosting investor confidence is not an option - it is mandatory. 

South Africa is part of the international financial community and as such, the reality of global and investor sentiments must be taken into account; certainly key policy decisions such as the appointment of the Central Bank governor plays a crucial role in boosting investor confidence.

According to the South African Reserve Bank Act 90 of 1989, the President, appoints the Governor for the new term after consulting with the Minister of Finance and the Board of Directors of the Reserve Bank. 

It would be tragic if the Reserve Bank's hard won credibility was compromised in the new ANC government by Cosatu's concerted political strategy to increase its own influence within the tripartite-alliance by undermining monetary policy with its misplaced ideas on inflation targeting.

Statement issued by Deon George MP, Democratic Alliance deputy spokesperson on finance, September 2 2008