’ s settlement account. this process will be completed without any manual intervention. the borrowing bank can revert to the next repo tender opportunity to redeem the out - standing amount on its marginal lending facility. the introduction of the new system will have a significant impact on payment, clearing and settlement transactions in south africa. numerous changes have already been made to existing practices, processes, arrangements and agreements and many will be made during the further implementation phases of the system. banks, clearing houses, other payment system intermediaries and corporate customers of banks will need to modify and enhance their systems if they wish to obtain maximum benefits from the new payment processing architecture. 2. 2 the implementation schedule the system will be implemented in a number of phases. the following dates have been set for the implementation of major milestones : date phase 9 / 3 / 98 introduction of electronic end - of - day settlement through samos the samos system and the interbank settlement network sarblink to facilitate the end - of - day settlement process were activated as from 9 march 1998. although the system is now fully functional and the banks are able to transfer funds during the day, settlement finality as at this stage is only achieved at the end of each day. for the time being, end - of - day positions will still be settled in the morning of the next day. 9 / 3 / 98 to 3 / 10 / 98 determining the liquidity impact of real time gross settlement the banks will use the system during this interim period to monitor their liquidity requirements for a trial period prior to the introduction of intraday finality. banks will also be able to bring their back - office systems in line with samos in order to enable them to capitalise on the opportunities provided by the new settlement options. 5 / 10 / 98 introduction of immediate intraday finality the switch to intraday finality will mean that all settlement instructions received by the samos system will become final and irrevocable as and when they are received, if processed successfully. the main implication of this step will be that banks would need to monitor their positions in the samos system carefully and ensure at all times that they have sufficient funds or financial instruments available to process their settlement instructions. to be decided move of the end - of - day settlement process to same day to bring the south african settlement practices in line with international best practice the final endof - day settlement process needs to be effected on a same day basis. the date of

lesetja kganyago : overview of the south african economy address by mr lesetja kganyago, governor of the south african reserve bank, at the 96th annual ordinary general meeting of shareholders, pretoria, 29 july 2016. * 1. * * governor ’ s address the past year has again been a challenging one for the bank against the backdrop of a hesitant recovery in the global economy and a slowing domestic economy. while the recent decision by the uk to leave the european union ( brexit ) has raised the risks to the outlook, the extent of the spillover effects are still unclear. much will depend on the speed and terms of the disengagement. at this stage we do not know which of a number of possible scenarios will unfold. the financial markets have stabilised following the initial volatile response to the decision. however, it is likely that growth in the uk, and to a lesser extent in the eu, will be negatively affected, as a protracted period of uncertainty is expected to undermine both business and consumer confidence. as a consequence, growth forecasts have already been revised down. this comes at a time when the eurozone growth prospects, although still muted, had improved steadily during the past year, partly in response to european central bank monetary stimulus. the us economic recovery appeared to be more sustained during the past year with consistent improvements in the labour market. this was despite a slowdown in the first quarter, which was viewed as temporary. the performance of the economy improved since then, but some negative spillovers from brexit are expected. despite sustained fiscal and monetary stimulus in japan, economic growth was marginally positive. while the past year was slightly more favourable for advanced economies, the same cannot be said for emerging markets, although there were divergent experiences. the growth slowdown in china continued, accompanied by increased volatility in domestic financial markets. this was partly in response to policy changes and persistent concerns regarding the stability of the financial sector. the slower growth continued to impact negatively on commodity prices, further complicating the outlook for commodity - producing emerging markets. more recently, the economy appears to have responded to renewed stimulus measures, and risks of a hard landing have abated. this has also helped to stabilise commodity prices. both brazil and russia slid into recession during this period and continue to contract. by contrast, india experienced high growth following a number of structural reforms. the slowdown in sub - saharan africa, in response