Gordhan: Rand is too strong
"The rand is too strong given the South African context, and we share the concerns of other emerging markets," he told reporters ahead of meetings of global finance chiefs at the International Monetary Fund and World Bank this weekend.
South Africa exited the recession during the third quarter of 2009 already but the country is still struggling with high unemployment and the economic recovery has been sluggish.
The Rand has, however, gained more than 28% against the US Dollar since the beginning of 2009 and more than seven percent since the start of 2010.
Low interest rates in advanced economies have caused investors to search for better returns in fast-growing emerging economies and the flow of capital is pushing up asset prices and inflation.
When Gordhan was asked whether the Reserve Bank should be accumulating foreign currency reserves more aggressively in the face of the strong Rand, Gordhan said: "More means you have got to find more resources; nothing comes for free in this business. We're working on that with the Reserve Bank."
Although the Rand weakened on Thursday, it's expected that the currency will be resuming its upward path on strong capital inflows.
Featured Rating agencies may come knocking
It is only the middle of February, but the rand has already made two big moves. The first was the rand moving from R14.60 to R 13.20 at the beginning of the year, as emerging markets (EM) became fashionable again. The second was where the rand gave away nearly 90 cents in 2 weeks as the EM rally ran out of steam, and local events started to hit the headlines.Read more
The cost of sending money home to neighbouring countries
Transferring money home within the Southern African Development Community (SADC) provides vital financial support for many households in neighbouring countries.Read more
Student bank accounts: Which come out on top?
Being a student signals budgeting and not having a lot of money at your disposal. This means streamlining expenses such as your grocery costs and entertainment budget. But what if your bank account is in fact costing you more than you can afford?Read more
Can you afford an ambulance in South Africa?
When a loved one is straddling the line between life and death, you won’t hesitate to call an ambulance. This week, Justmoney found out how much an ambulance ride costs in South Africa, whether you can refuse to get into an ambulance, and who pays the bill if you’re unconscious.Read more
Sign UpTo our weekly newsletter for advice you can bank on
President Hotel Easter Special
Price: From R1,500
When: 15 March to 30 April
Where: Cape Town
Kulula-Preskil Island Resort Special
When: 11 May -14 September
A Touch Of Madness Tuck In Tuesday Special
Where: Cape Town