the one region that was expected to show significant positive growth this year ) but on the tourist industry world - wide. south africa will not be immune to this fall - out, and there is already evidence of some decline in tourism, particularly from east asia. tourism has been one of the important growth areas of late in the south african economy and during january and february of this year, the number of visitors to south africa increased by over 8 per cent, compared to the same period last year. this is despite an unfavourable tourist environment of slow global growth and increased fears of travelling. but it is not only tourism that is negatively affected by the slow global growth. the decline in manufacturing output mentioned above is to a large extent a result of declining export volumes. although part of that is no doubt attributable to the recovery of the rand, the decline in demand due to the global slowdown is significant. the low growth, and in fact fears of deflation in some countries, does mean that we remain in a low inflation international environment, which will help to contain inflation domestically. similarly, the near conclusion of the war in iraq has meant that we have returned to a more orderly world oil market, and a major risk factor to our inflation targets has in fact receded. 6. nofp and exchange rate developments the recent successful government bond issue of euro 1, 25 billion has allowed us to achieve our objective of expunging of the nofp. the us dollar equivalent of this amount, which was received on 16 may, was delivered against outstanding forward commitments which effectively eliminated the outstanding net open foreign currency position ( nofp ) of the reserve bank. the net open foreign currency position stood at us $ 1, 2 billion as at the end of march 2003. the exact details of the impact of this, and other transactions, which took place during the month of april and may, will be released in accordance with the reserve bank's regular data releases to the market. the outstanding forward book on 30 march 2003 was us $ 6, 6 billion. probably the most important reason for the reserve bank to further reduce the outstanding forward book, now that the nofp has been eliminated, is to eliminate a source of instability in the south african economy. according to many observers the total elimination of the forward book may contribute to a more stable exchange rate of the rand over time. as and when the forward book has been eliminated, the focus of the bank will turn increasingly to managing the foreign

gill marcus : overview of the south african economy address by ms gill marcus, governor of the south african reserve bank, at the 91st ordinary general meeting of shareholders, pretoria, 30 june 2011. * * * dear shareholders, members of the board, deputy governors, ladies and gentlemen the business of an ordinary general meeting ( ogm ) of the bank is to receive and discuss the minutes of the previous meeting, the financial statements for the preceding financial year, the report of the board on the state of affairs and business of the bank, the auditors ’ report, to attend to the election of directors and to attend to the appointment of auditors and the approval of their remuneration ( this being referred to as the ordinary business of a general meeting ). in addition, special business of which proper notice was given, may be transacted at the general meeting. this special business would be resolutions proposed by shareholders that relate to the ordinary business of a general meeting. as in recent times the conduct of special business has been an issue at general meetings, it is necessary to record that special business is not any business that shareholders wish to raise relating to the bank and / or criticism of reports or documents presented at the general meeting. it must clearly relate to the ordinary business of a general meeting referred to above and must, more particularly, be framed as a resolution that is capable of being implemented, if adopted. business framed as criticism or demanding action on behalf of the bank and which does not relate to the ordinary business of a general meeting as referred to above does not constitute special business. in addition, matters relating to legislation under which the bank operates and the requirements thereof are matters that do not constitute special business and are incapable of being implemented by the adoption of a resolution. these are matters that ought to be raised with the national treasury and parliament. criticism of the reports and documents presented at the general meeting does not in the normal course of business qualify as special business, unless properly framed as a resolution that is capable of being adopted. any criticism, or for that matter queries, relating to reports and documents presented at the general meeting is properly dealt with and addressed at the general meeting as part of a discussion around these reports and documents. and this is the basis on which we intend to conduct the business of this meeting. the bank was founded at a time of great turmoil in the international monetary system and amid vigorous debates about the appropriateness of a return to the gold standard. in that context the bank