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South Africa: not prepared to ease the country’s economic crisis by printing money

South Africa: not prepared to ease the country's economic crisis by printing money

December 13, according to local media reports in South Africa, Rashad Cassim, vice president of the Reserve Bank of South Africa (SARB), said that South Africa is not prepared to print money to alleviate the country’s deficit and economic crisis.

“Many central banks, especially those in developed economies, have to resort to quantitative easing (QE) to a large extent after the economy has been affected by the epidemic to stimulate their economies with “speed and vitality”, Qasim said.

But for South Africa, even if the economic situation deteriorates and inflation falls further to the low end, South Africa still has enough room to avoid using quantitative easing (QE) to solve related problems.

Qasim said that South Africa is currently responding quickly to the economic crisis caused by the epidemic by cutting interest rates sharply and obtaining some funds from external sources such as the International Monetary Fund, the World Bank and the BRICS Bank.

South Africa is highly dependent on external financing, and quantitative easing to alleviate the deficit and economic crisis will eventually change the confidence of global investors in South Africa.

Zimbabwe, Venezuela and other countries have all promoted economic growth through printing money, but the actual problems have not been solved in the end.

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