Guiding consumers since 2009

Marcus: Strong Rand hurts SA's fragile economy

By Staff Writer
South African central bank Governor Gill Marcus said on Wednesday that because the country is in a state of fragile recovery and the rand being strong is hurting the continent's largest economy.

Since the start of 2009, the Rand has firmed by more than 28 percent, and this has weighed exports from mining and manufacturing sectors that are key contributors to the economy.

"We've seen the (manufacturing and retail) numbers that have come out. They are not as good as they should be. We are in a fragile recovery," she told a meeting in Johannesburg.

There has been growth in the manufacturing sector output and retail sales slowed unexpectedly on a year-on-year basis in August which has raised the possibility of yet another interest rate cut.

The central bank reduced the repo rate by 600 basis points to 6.0 percent since December 2008, leaving lending rates at their lowest level in three decades.

"The rand had helped ease inflation and contributed to the bank's decision to lower interest rates by 100 basis points this year, but it could be difficult to influence its value on the market to help the manufacturing sector," Marcus added.

"The size of the South African market is huge. When you are looking at what you can do , you have got to recognise the size of the market," she concluded.

Recent Articles

Featured The bank took money from my account – is this allowed?

You’ve just deposited money into your account and suddenly you see a notification from your bank. Money has been deducted from your account to pay the outstanding debt that you have with the bank. Is this allowed?

How much does it cost to draft a will?

Having a Will allows you to determine who inherits your property when you die. If you die intestate, the government will determine how to distribute your assets. Many people die intestate because they don’t know how to draft a will or are intimidated by the costs of drafting one.

Is your home correctly priced for the current market?

The property market is typically in either one of two phases, a buyers’ market or a sellers’ market. According to real estate experts, we are currently in a buyer’s market. For this reason, it is important as a seller to correctly price your house to ensure interested buyers and a valuable sale in the end.

Fuel rewards programme – how to fill up on petrol and points

South Africa’s volatile economy has often meant that factors like the fuel price bear the brunt. This year alone the country’s fuel price has fluctuated by between R1.50 to almost R3, which has put increasing pressure on motorists. That said, many of the bigger South African brands have provided some relief by way of fuel rewards programmes.

Deals

Wax On Wax Off Wednesdays at Rouge Day Spa

Price: From R50
When: Wednesdays
Where: Cape Town

Aarya Restaurant Christmas Lunch Special

Price: R425
When: 25 December 2019
Where: Johannesburg

Da Vinci’s Tantalising Tuesday Pizza Special

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