Monetary and fiscal policy is ‘as good as it gets’ — structural side now needs attention
IMF's Africa department head Abebe Selassie says political uncertainty is probably depressing the value of the rand
Washington — Political uncertainty is probably depressing the value of the rand, according to the head of the International Monetary Fund’s (IMF's) Africa department. SA’s fiscal and monetary policy has been “as good as it gets,” Abebe Selassie said in an interview in Washington. “It’s more on the structural side that attention is needed. It’s more about getting confidence in the private sector to invest.’ While most polls are predicting a comfortable win for the ANC in the May 8 general election, President Cyril Ramaphosa faces difficulties introducing reform to stimulate the economy, consolidate spending and reduce corruption. “The rand is, of course, among the most freely floating currencies in the emerging-market universe, subject to the ebbs and flows of sentiment,” Selassie said. “Our view is that there’s nothing awry with the calibration of macro policies.” The rand weakened sharply in 2018 as rising interest rates in the US put pressure on emerging markets including Argenti...
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