‘SA not alone in weathering hard economic conditions’

Reserve Bank Governor Lesetja Kganyago says emerging markets across the globe remain under pressure.

South African Reserve Bank governor Lesetja Kganyago. Picture: AFP.

JOHANNESBURG - South African Reserve Bank governor Lesetja Kganyago says that while the rand battles to regain ground against major global currencies, the country is not alone in weathering difficult economic conditions.

Kganyago is part of South Africa's delegation to the World Economic Forum (WEF) in Davos, Switzerland, which has set out to sell South Africa as a safe investment destination.

He says foreign investors have been asking questions about President Jacob Zuma's decision to shuffle three finance ministers in the space of five days last month, but this has not deterred them.

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Kganyago says emerging markets across the globe remain under pressure.

"Speaking to one of the investors, he said, 'Oh your currency is at its weakest since 2008' and I said, 'Yes and the Hong Kong dollar is at its lowest since 1999'. So don't just pick up one currency. There are so many readjustments that are taking place."

But he says South Africa has ways of remaining resilient.

"The strength of South Africa is that our foreign liabilities are redenominated in our own currency and so our assets then rise in value faster than our liabilities do."

Kganyago says while tough questions were asked by investors, the WEF has yielded positive results for South Africa.

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