S. Africa's new central banker
October 6, 2014
Lesetja Kganyago will become the new governor of South Africa's Reserve Bank, the country's president, Jacob Zuma, announced Monday.
The bank's current deputy governor, Kganyago will succeed Gill Marcus, whose five-year term is coming to an end, and take the helm on Nov. 9.
The rand strengthened almost a full percentage point upon the announcement. Investors see Kganyago as an experienced deputy who will protect the independence of the central bank and keep prices stable in Africa's most advanced economy.
The primary objective of the Reserve Bank is to protect currency in the interest of balanced and sustainable growth, Kganyago told reporters. He pledged to keep the financial system stable and to bring inflation in South Africa under control, which is now over 6 percent.
"I shall not disappoint," he said.
While local analysts have welcomed Kganyago's appointment, others believe he will likely face constant pressure from unions, who have accused the Reserve Bank of not doing enough to alleviate wealth inequality in South Africa, given the country's racially-charged history.
Critics have said a broken education system has left South African blacks poorly prepared for the labor market, contributing to the country's unemployment rate of 25 percent.
Kganyago started his career as a bank clerk before working in the national treasury. He holds degrees from the University of London and the London School of Economics.
el/cjc (Reuters, dpa, AP)