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SA 'Fortunate' to Have Strong Rand

| News by Staff Reporter

SA is fortunate to currently have a strong currency, according to Mr. Gordhan

Mr. Pravin Gordhan, South Africa’s Minister of Finance, on Wednesday said South Africa was fortunate to currently have a strong rand.

Asked by the SABC about the rand Mr. Gordhan said, “It's fortunate to have a strong rand right now ... We are still concerned about short-term capital.”

He said having a strong rand at the moment was helping to cushion the impact and effects of higher international oil and food prices.

The rand is currently in a very strong position against the U.S. dollar, having gained over 30 percent since the beginning of 2009 and this week reaching it’s strongest levels in three years.

Despite the strength of the rand currently lessening the price of petrol and food, manufacturers still consider the rand, last trading at 6.64 to the dollar, to be too strong.

Mr. Gordhan admitted that the stronger rand does have a negative impact on manufacturing but pointed out that prices would be higher were it weaker.

Source: www.bizpremises.co.za