Reserve Bank Governor Lesetja Kganyago has strongly cautioned against approaching the International Monetary Fund (IMF) for financial backing.
Speaking on the Bottomline on Thursday night, Kganyago says going to the IMF would prove disastrous for the economy.
He says sound economic policies will put the country on track and in a better position in terms of economic growth.
“South Africa does not have to go to the IMF cap in hand. The future of this country is in our hands, you end up in the IMF because you have lost confidence of lenders, you have messed up your economic policy so badly that the only choice you have can only be bad ones and when you faced with that one, no one wants to lend you money and the only institution that will be prepared to lend you money is the IMF.”
Kganyago adds that South Africa has a history of overcoming adversities and has been able to stabilize the economy over the years.