Reserve Bank confirms discussions to tap reserves

South Africa’s central bank confirmed that it is in talks with the National Treasury to find a way to tap contingency reserves to fund the country’s growing budget deficit. “We are engaged with the Treasury,” Governor Lesetja Kganyago told reporters on Thursday after the monetary policy committee held rates steady. “We have also bought in international expertise to engage on these matters,” including how to deal with the capital position of the bank, he said.