Rand is overvalued-IMF

The International Monetary Fund (IMF) has acknowledged in a new report that South Africa's real exchange rate could be between 5% and 15% overvalued.

But it also asserts that the size of the currency market and the dominance of nonresidents in that market will limit the government's ability to influence the level of the rand.

In its '2010 Article IV Staff Report', the IMF highlights that nonresidents account for nearly 75% of the daily turnover of $10- to $12-billion in the South African foreign exchange market - daily trade in all currencies has been estimated at close to $4-trillion.

Editor's Comment
Human rights are sacred

It highlights the need to protect rights such as access to clean water, education, healthcare and freedom of expression.President Duma Boko, rightly honours past interventions from securing a dignified burial for Gaoberekwe Pitseng in the CKGR to promoting linguistic inclusion. Yet, they also expose a critical truth, that a nation cannot sustainably protect its people through ad hoc acts of compassion alone.It is time for both government and the...

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