INTERNATIONAL FINANCIAL SYSTEM

International Financial System

International Financial System

US$1 = 9.14 SAF Rand

US$10,000 = 91,400 SAF Rand

Issues relating to the exchange rate management are among the most important problems in the current debate on economic reform in South Africa. The real exchange rate1 relative prices is an important signaling cross-sectoral growth in the long run. The level of real exchange rate (relative to the equilibrium real exchange rate) affects the stability of exports and private investment (Aron, 2007).

South Africa's transition from inward-looking to outward-oriented economy is to take place within the limits established in the past industrial policies. South Africa has recently ...