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SA's financial institutions can withstand Brexit shock - Zuma

Jun 24 '16 | By La Afrique Media | Views: 470 | Comments: 0

President Jacob Zuma (AFP): SA govt will advise citizens on Brexit if necessary - Zuma

© AFP SA govt will advise citizens on Brexit if necessary - Zuma

President Jacob Zuma has said government will “advise the South African public” about unfolding developments where necessary around the outcome of the Brexit referendum.

He also said South Africa would continue with strong trade and financial relations with Britain and the European Union.

Just under 52% of the electorate in Britain voted on Thursday to leave the European Union.

“Government has noted the outcome of the referendum in Britain (Brexit),” Zuma said in a statement issued by spokesperson Bongani Ngqulunga.

“It will take two years for the institutional changes that this vote implies to be negotiated and we remain committed to retaining strong trade and financial relations with both Britain and the European Union.

“The uncertainty that arises from this vote means that the volatility that has characterized capital markets in the lead-up to the vote may persist.”

According to the statement the National Treasury and the South African Reserve Bank have been in discussions with financial institutions and the possible implications for the local economy.

“Our banks and financial institutions are well positioned to withstand financial shocks to the system as demonstrated in previous episodes including the 2008/09 global financial crisis.

“We are therefore confident that our financial system including the banks and the regulatory framework are extremely resilient and reliable,” Zuma said.

“The Reserve Bank and the National Treasury are closely monitoring the unfolding developments and will advise the South African public where necessary.

“In this context, our ongoing efforts as South Africans, government, business, labour and civil society to reignite growth become that much more urgent and critical.”

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