Which central bank was created by South Africa’s Currency and Banking Act of 1920?

The South African Reserve Bank was created by South Africa’s Currency and Banking Act of 1920.

The bank began operations on 30 June 1921, making it the oldest central bank in Africa. Its creation followed recommendations from the 1920 Currency and Banking Act and reflected a need for a national institution to issue currency and manage reserves.

The South African Reserve Bank, commonly called the SARB, is responsible for protecting the value of the currency, conducting monetary policy, and contributing to financial stability. It issues South African banknotes and coins in cooperation with the national authorities. Its headquarters are in Pretoria.

South Africa’s central bank is unusual because it remains privately owned, although it operates under public legislation and its mandate is set by law. Private shareholders do not control monetary policy. This ownership structure is often misunderstood: the SARB’s public responsibilities and institutional independence are more important than its shareholding arrangement.