For the first time since October 2008, we are witnessing the USDZAR trading above 11. With Mr Lesetja Kganyago taking over as Governor of the Reserve Bank of South Africa (RBSA) on the 9th of November 2014, the investment community is eagerly waiting for action.
This Article looks at the fundamental and technical aspects affecting the rand.
The monetary policy in South Africa (RSA) endeavors to create a stable financial environment that is essential for economic growth and employment creation.
As of September 2014 the inflation rate in RSA was 5.9%. This shows that inflation is close to the upper bound of the range and there is need from the central bank authorities to keep it in check. However inflation is not at problem at the moment and there is no need for action at the moment.