National
Rand should not be ‘too strong’ - Roodt─── JOSCA HUMAN 20:58 Fri, 16 Feb 2018
With new changes on the political front, it is believed that the new leadership of Cyril Ramaphosa will instil new confidence with investors, as well as the economy.
Economist, Dawie Roodt, says the financial markets are doing well and the rand has become much stronger after recent political developments in South Africa. Roodt, however, says South Africans must hope that the rand does not shoot up too much, as this will reduce the demand for South African exports.
Exchange rates are instrumental in determining the price and therefore the competitiveness of imports and exports. A strong rand means that imports are relatively cheaper for us and goods produced within South Africa are more expensive for foreigners.
Roodt adds that this is a reflection of the positive mood in South Africa and it is applicable to the financial market.
Roodt says he hopes the president will give some indication on what his plans are to support the South African economy.
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