SA rules out Rand pegging

source: Mmegi

South Africa’s Reserve Bank has again ruled out pegging the rand against the dollar despite worries over the strength of its currency, Business Report newspaper said yesterday.

Both the government and the central bank have in the last few months expressed concern that the stronger rand undermines export competitiveness and therefore economic growth, but say the need for a stable, competitive exchange rate does not translate into fixing the currency.

Business Report quoted Reserve Bank head of economic research Johan van den Heever as telling legislators that maintaining a currency peg required large foreign exchange reserves.

He used the example of China, which has amassed huge volumes of [continue reading]

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