Former Reserve Bank of Australia board member Warwick McKibbin comments:
“Government can take funds from the Reserve fund but it needs to be prepared to put it back if there is a crisis,’’ Mr McKibbin added.
He was commenting after RBA governor Glenn Stevens confirmed on Friday that he was at loggerheads with Treasurer Wayne Swan over the government’s extraction of a $500 million dividend from a fund used by the Reserve Bank in emergencies.
- The RBA wanted to to use its 2011-12 profits to restore the Reserve funds
- Governor Stevens indicated that the final decision was the Treasurer’s
- Swan issued a statement saying the decision had been taken only after consultation with Stevens
Financial Review (gated)
