/ 12 February 2001

MBEKI SEES NO REASON FOR RAND SELLING

SOUTH African President Thabo Mbeki says he can see no reason for the rand’s dip to record lows against the US dollar last week. The volatile rand hit a record low of 8.03 against the dollar last Friday, which traders said was mainly on the back of a weaker euro, the currency of South Africa’s biggest trading partners. Mbeki said Reserve Bank governor Tito Mboweni was at a loss to explain why the rand was under attack. The rand has lost 25% of its value against the dollar since the start of 2000, hit by a combination of a strong dollar, concerns over sluggish domestic economic growth, a delayed privatisation programme and political and economic turmoil in neighbouring Zimbabwe. – Reuters