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 Turn your debt around in 6 months

For many of us, January is the month to set goals, find renewed motivation, and make changes to areas of our lives where we feel that they’re needed. But let’s be honest, as the year and the motivation dwindles, these goals are often forgotten.

Which bank offers the best home loan?

Applying for a home loan can be a stressful experience – from filling out the paperwork to comparing the interest rates and navigating all the potential red tape. But it needn’t be.

6 smart ways to select the best medical scheme

It’s important to belong to a medical scheme that offers great benefits at affordable prices. However, due to insufficient knowledge, many people find themselves paying higher premiums for a medical scheme which does not even meet their needs.

Calculate your vehicle finance instalments

You’ve dreamed of a set of wheels since you can remember, and now that you’re a responsible adult with a steady income, you’re ready to take on funding to make this dream a reality. But what kind of vehicle finance options are available to you? Justmoney gives you the rundown.

Deals

Wimpy Cheese Griller Brekkie Special

Price: R49.90
When: Until 9 September
Where: Nationwide

Mowana Spa Me Time Indulge Special

Price: R899
When: Until 31 August
Where: Fourways

Premier Hotels Weekend Getaway Special

Price: From R540
When: From 1 September
Where: Nationwide