War in Ukraine | SARB wary of SA’s non-aligned stance

JOHANNESBURG - The Reserve Bank warns that should South Africa face sanctions due to its stance on Russia’s invasion of Ukraine, the economic fallout could be dire.

It says the consequence could be a sudden halt to capital inflows and increased outflow.

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In its latest Financial Stability report, the Reserve Bank cautions that the country’s financial system would be unable to function if its ability to make international payments in dollars were to be impeded.

Should South Africa be banned from SWIFT as a result of secondary sanctions, these payments will not be possible.