Get more Mail & Guardian
Subscribe or Login

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

Vote for an informed choice

We’re dropping the paywall this week so that everyone can access all our stories for free, and get the information they need in the run up to the local government elections. For the latest updates and political analysis, sign up to our daily elections newsletter.

If our coverage helps inform your decision, cast your vote for an informed public and join our subscriber community. Right now, a full year’s access is just R510, half the usual cost. Subscribers get access to all our best journalism, subscriber-only newsletters, events and a weekly cryptic crossword.

Evan Pickworth
Guest Author

Related stories

WELCOME TO YOUR M&G

Already a subscriber? Sign in here

Advertising

Latest stories

Eskom to take ‘extraordinary measures’ to avoid load-shedding for elections

Stage four load-shedding rolled out to ensure the polls on Monday 1 November are energy secure

Khaya Koko: John Steenhuisen, please take a knee

The Democratic Alliance leader rebuking cricketer Quinton de Kock would be this election season’s greatest triumph

Paddy Harper: Will the Covid-19 cigarette ban come back to...

Flashbacks of nicotine deprivation and not poor service delivery may see a run on the polls on Monday

Eskom resorts to stage four load-shedding

Stage-four outages will continue until Friday after the loss of two units during the night, and three in total at Medupi, Kusile and Matla power plants tripping
Advertising

press releases

Loading latest Press Releases…
×