DUMA GQUBULE: GDP will languish despite positive right-wing GNU vibes
If the essentially ANC government continues to implement failed policies, the results will be the same
I must point out to the economic illiterates that a strong currency does not necessarily reflect a strong economy. Many East Asian countries and China until recently pursued a weak currency strategy to develop their export industries. The movement of the rand usually has little to do with developments in the local economy or politics. As a rule, it is better to first look at the dollar and euro exchange rates to understand what is happening with the rand.
“Madiba Magic” lasted for almost two years as capital inflows kept the rand stuck at about R3.60c to the dollar. The “New Dawn” lasted five months. There was a wave of optimism before and after Cyril Ramaphosa’s election as ANC president in December 2017. The rand appreciated 20% against the dollar to a high of R11.50 on February 26 2018 from a low of R14.40 on November 15 2017. “Ramaphoria” had dissipated by the first week of May. ..
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