Business News
South Africa officials try to allay investors' fears
Aug 8, 2011, 13:08 GMT
Johannesburg - South Africa's finance minister and central bank chief tried on Monday to calm nervous investors, saying the finances of Africa's largest economy were stable.
'South Africa has deep and liquid financial markets which continue to function even during this difficult time of global financial turmoil,' said Finance Minister Pravin Gordhan and South African Reserve Bank Governor Gill Marcus.
The country suffered massive job losses as a result of the economic downturn in 2008, and has an unemployment rate of 25.8 per cent. But a conservative regulatory policy was seen as shielding parts of the financial sector during the global recession.
Gordhan and Marcus said South Africa, the only African member of the G20, would be willing to 'take action' to ensure the liquidity of financial markets.
'In the long term, South Africa notes the need for bold global economic leadership especially in dealing with global financial imbalances,' the two officials said.
The announcement came as the Johannesburg Stock Exchange was headed for its fifth straight day of losses and the yield on government bonds was rising, owing to global concerns.
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