Pretoria – The Presidency says government has noted the outcome of the referendum in Britain, also called Brexit.
Britain on Thursday held a referendum on the United Kingdom’s membership of the European Union. A total of 52 percent of the 30 million people who took part voted to leave.
Prime Minister David Cameron has since announced his decision to step down by October.
The Presidency said it will take two years for the institutional changes that the vote implies to be negotiated and that South Africa remains committed to retaining strong trade and financial relations with both Britain and the European Union.
“The uncertainty that arises from this vote means that the volatility that has characterised capital markets in the lead-up to the vote may persist.
“National Treasury and the South African Reserve Bank have been in discussions with financial institutions on the possible implications for the South African economy.
“Our banks and financial institutions are well positioned to withstand financial shocks to the system as demonstrated in previous episodes, including the 2008/09 global financial crisis,” it said.
Pretoria said it was confident that the country’s financial system, including the banks and the regulatory framework, are extremely resilient and reliable.
The Reserve Bank and National Treasury are closely monitoring the unfolding developments and will advise the South African public where necessary.
In this context, the Presidency said, ongoing efforts as South Africans, government, business, labour and civil society to reignite growth become that much more urgent and critical. – SAnews.gov.za
