Gordhan concerned that rand too strong

South Africa’s Finance Minister, Pravin Gordhan, said on Tuesday that he is concerned about the strong and uncompetitive levels of the rand at the moment and wished authorities had the capacity to intervene in a more assertive way than is available at present.

He said, though, that Treasury would assist to increase foreign exchange and gold reserves beyond the $40-billion mark.

One of the big surprises in Tuesday’s medium-term budget is an announcement by Treasury that exchange controls will be relaxed to lower the cost of doing business and to promote investment. Included among these reforms is the removal of the 180-day rule requiring companies to convert their foreign exchange into rand. This rule has added to the volatility of the rand in the past.

At the same time, the Treasury has called current strong levels of the rand into question and said it will work together with the central bank to support low inflation and a more stable and competitive real exchange rate. — I-Net Bridge

We make it make sense

If this story helped you navigate your world, subscribe to the M&G today for just R30 for the first three months

Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.”

Evan Pickworth
Guest Author

Related stories


Already a subscriber? Sign in here


Latest stories

Suicide cases soar in Zimbabwe

The economic crisis in the country appears to be pushing people over the mental edge

OPINION| New UK work visa to exclude graduates from Africa

If graduates did not get their qualifications from the list of top 50 universities, 40 of which are in the US, France, China, Hong Kong, Australia, Germany, Canada and Japan, they will be excluded

Hackers infiltrate SA illicit financial flows conference with porn clip

The conference was attended by state agencies, blue- chip global and local non-governmental agencies and public accountability experts

OPINION| South African audiences want more authentic and accurate diversity...

The media has the power to shape perceptions, so television shows and movies can help shape a positive view of people who feel stereotyped

press releases

Loading latest Press Releases…