Finance Minister Pravin Gordhan this week met key manufacturers to discuss their calls for the government to weaken what they say is an overvalued domestic currency, the ministry said.
South Africa’s government and the central bank have expressed concern that the strong rand currency could hamper a recovery among both exporters and importers following last year’s recession.
Gordhan “held constructive talks with representatives of the manufacturing circle on Tuesday … to discuss their calls on government to intervene in the financial markets to weaken the rand against major currencies,” the Finance Ministry said in a statement on Wednesday.
“The meeting was part of the ministry’s regular engagement with fellow South Africans to exchange views on the challenges facing the country and how best to address these,” it said.
The government has previously said it would not fix the currency, which gained about 30% against the dollar last year, but would let markets determine the exchange rate.
But last month Economic Development Minister Ebrahim Patel said the rand, which traded at 7,758 to the dollar on Wednesday, needed to be weaker to support producers in Africa’s biggest economy. –AFP