Too much rand volatility could cause investor uncertainty and a delaying of investment decisions which will in turn adversely affect economic growth and job creation, International Monetary Fund (IMF) officials say in a working paper. Rand volatility was mainly driven by commodity price volatility, and global market volatility, as well as domestic political uncertainty, the paper noted. While SA could not control commodity price volatility or global financial market volatility, it could further strengthen its buffers, such as international reserves, and reduce external vulnerabilities which should reduce the susceptibility to volatility, the IMF officials said.
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