Gordhan: Rand is too strong

By Staff Writer
Finance Minister Pravin Gordhan thinks the Rand is too strong and said that South Africa shares its concern with other emerging markets.

"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.

Recent Articles

Featured Do you need credit to survive Easter?

Easter weekend is here and with it the expectation of celebration. While there is nothing wrong with this, it often means spending more money than you bargained for.

 

Read more

Young woman building a legacy brick by brick

When her dad passed away, Siyasanga Ngcongca, an internal auditing graduate, took over the family business. Ngcongca Construction, as her company is known, is a service provider to five insurance companies, handling building and commercial claims.

Read more

Can you evict paying residential tenants?

One of the most common reasons for wanting to evict a tenant is non-payment of rent. But there are many other situations that landlords may encounter. These can range from damaging property and breaching contract, to being reported as a continuous disturbance by neighbours.

Read more

How one entrepreneur designed her financial future

From as early as Cannon remembers, she recalls her grandmother seated behind a sewing machine. Through this influence she was sewing her own aprons and doll dresses by the time she was ten, and by the time she was 16, she started designing and make her own clothes.

Read more

Sign Up

To our weekly newsletter for advice you can bank on

Deals

Hartbeespoort Romantic Weekend Special

Price: R2,999
When: Weekends
Where: North West

Da Vinci Happy Hour

Price: Available on request
When: Weekdays
Where: Cape Town

Glenburn Spa Easter Package

Price: From R1,065
When: 18 -22 April
Where: Muldersdrift