Consumers to feel impact as rand hits all-time low
On Monday the rand reached its lowest level ever against the dollar of 14.01.
JOHANNESBURG - Economists say South Africans will feel the effects as the rand continues to come under pressure against major currencies.
Yesterday, the rand reached its lowest level ever against the dollar of 14.01.
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It's also the lowest it's been against the pound as possible rate hikes in the US and Chinese markets further create uncertainty.
Economist Dawie Roodt says, "I know that the trade unions want a weaker currency, but it potentially it means that we are poorer. Just go for a cup of coffee in London, for example, you'll see you're going to pay much more now than a month ago."
Reserve Bank boss Lesetja Kganyago has said a further fall in the rand is not necessarily a bad thing.
Economist Chris Hart said the weakening exchange rate does not help in the long run.
"The Reserve Bank's comment that the weak rand can actually help South Africa's export is true to an extent, but a weakening exchange rate does not really help competitiveness in the long run."