MAMOKETE LIJANE: The fall of the rand is not a pretty sight
What the world sees is a troubled emerging market with questionable sustainability
I have for some time been arguing that the stagflationary and adverse balance of payments effects of load-shedding, in the context of an already difficult global backdrop, would be negative for the rand and monetary policy. This is exactly what is playing out in our economy now, and it’s not a pretty sight.
Pronouncements by policymakers, including the electricity minister, that load-shedding would intensify into winter undermined the case for an already struggling currency. Add to that the diplomatic spat between the SA and US governments over possible arms sales to Russia, and the currency continued to slide. The rand has depreciated 11% relative to the dollar and underperformed all other major currencies apart from the Argentinian peso in 2023 to date. ..
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