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Picture: 123RF/ALLAN SWART
Picture: 123RF/ALLAN SWART

In his gung-ho state of the nation address, President Cyril Ramaphosa claimed that the economy had tripled in size since 1994. What he didn’t say was that in March 1994 the rand/dollar exchange rate was R3.45/$, and since March 2023 the rate has been hovering between R19/$ and R19.50/$.

Did the economy improve in (depreciated) rand value terms or in more stable dollar values?

If Eskom, Transnet, the ports, the Post Office, SAA and the like had been in an efficient state, the official exchange rate could have been much lower; there would be less unemployment and considerably fewer people would have to be doled out of sheer misery by a basic income grant. In short, the percentage of the poor population would be far smaller, and the economy far better in real terms.

There is a saying that figures don’t lie, but liars do figure.

VA Volker
Pietermaritzburg

The FM welcomes concise letters from readers. They can be sent to fmmail@fm.co.za

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