S.Africa "scratching head" on stabilising rand

PRETORIA, Sept 28 – South Africa’s government is scratching its head about how to stabilise the volatile rand, whose depreciation benefits sectors such as manufacturing but also triggers inflation, Finance Minister Pravin Gordhan said on Wednesday.

Briefing journalists after last week’s annual World Bank and International Monetary Fund meetings, Gordhan said he was not sure how Africa’s biggest economy could manage fiscal credibility and grow the economy at the same time.

The rand lost 22 percent against the dollar in the first three weeks of September as investors worried about Europe’s deepening debt crisis ditched emerging market assets.

 

 

Source: Reuters Africa newsletter

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