Reserve Bank Warns Government's non-aligned stance on Russia's Invasion of Ukraine could lead to Sanctions

The South African Reserve Bank is worried that the government's stance on the invasion of Ukraine could have damaging effects

• The country's central bank believes that South Africa could face sanctions for its non-aligned position in the war
• The SARB has cautioned that through secondary sanctions, Mzansi would not be able to make international payments which would have a dire impact

JOHANNESBURG - The South African Reserve Bank (SARB) has cautioned that the government's non-aligned stance on Russia's invasion of Ukraine could lead to sanctions.

South Africa could face direct and indirect sanctions

According to eNCA, the Reserve Bank believes South Africa could face secondary or indirect sanctions should the government continue with its neutral stance.

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The country's central bank added sanctions would have a catastrophic effect on South Africa's struggling economy.

The Reserve Bank stated in its Financial Stability report that South Africa could not function if it could not make international payments in US dollars.

The SARB gave an example that if South Africa were to get banned from SWIFT through secondary sanctions, these payments would not be possible.

According to BusinessTech, 90% of South Africa’s international payments are made through SWIFT.

South Africa's neutral stance in Russia's invasion of Ukraine questioned

Recently, South Africa's non-aligned stance in Russia's invasion of Ukraine has been scrutinised. US Ambassador to South Africa Reuben Brigety raised alarm bells when he accused South Africa of supplying weapons and ammunition to Russia.

South Africa has also participated in military exercises with Russia, despite claiming to be neutral, reports BBC.

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South Africans call out the Reserve Bank for commenting on international relations

@RichmanSekatane said:

"Why do they sound like a political party?"

@colza91 said:

"Is Reserve Bank allowed to be political in their stance?"

@Blacksh90139340 said:

"Is this what Reserve Bank should be commenting on? Is Reserve Bank in a political space now?"

@M_Fankie said:

"The Reserve Bank should focus on their mandate and stay out of politics."

@zuess_1 said:

"Our political leaders don't care because they've enriched themselves & are not subjected to our everyday struggles."

South Africans accuse DA leader John Steenhuisen of treason for telling USA that SA sold weapons to Russia

Briefly News previously reported that Democratic Alliance leader John Steenhuisen has rubbed many South African the wrong way after an explosive interview with a US broadcaster.

Steenhuisen told CNN and its billions of views that his party had suspected that SA sold weapons to Russia for its war in Ukraine for the past year and a half.

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Steenhuisen's comments piggyback US ambassador Reuben Brigety's accusation that South African weapons were loaded on the Russian ship Lady R when it was docked in Simon's Town in December 2022.

Source: Briefly News