Banknotes and Coin
The South African Reserve Bank has the sole right to make, issue and destroy banknotes and coin in South Africa. The South African Mint Company, a subsidiary of the Bank, mints all the coins on behalf of the Reserve Bank. The South African Bank Note Company, another subsidiary of the Bank, prints all banknotes on behalf of the Bank.
The Bank is responsible for the bulk distribution of banknotes and coin and to meet the public demand. It makes virtually no difference from the Bank’s broad monetary policy perspective whether the public holds cash, demand deposits at banks or has pre-arranged but unutilised credit lines. The potential supply of banknotes and coin to the public however, is limited by banks to the extent that the public is only permitted to withdraw cash held as deposits or draw cash against pre-arranged credit facilities.
The branches of the Bank, the South African Police Services and the commercial banks all work together in combatting the counterfeiting of banknotes and coin.