South Africa rand hits all-time low against US$

JOHANNESBURG - South Africa's currency has fallen to an all-time low against the US dollar.

It briefly hit a rate of 14 to the dollar amid concerns about the strength of the Chinese economy, reports the Reuters news agency.

Economies that rely on the sale of commodities - such as South Africa's - have been hit by the slowdown in growth in China, a major source of demand.

The problem was compounded when China unexpectedly devalued its currency earlier this month.

The rand is particularly vulnerable because it is one of the globe's most highly traded emerging market currencies, South African economist Martyn Davies told the BBC.

He added that South Africa's central bank will find it hard to defend the currency against a slide in value, instead the government needs to address some of the fundamental economic issues such as the problems in the power sector.

Comments (2)

The decline in the purchasing power of the rand is a sad sight.I hope they are not going the way Zimbabwe went.

juks - 25 August 2015

South Africa is already going towards that way,i have met many South African business people in the SADC region who have completely disinvested from S Africa and set up base in other SADC countries.They said the reason why was because the S African economy was slowly going down.South Africa has lost a significant number of engineers,technicians,technocrats etc etc,the critical skills needed to carry out the much needed maintenance work in the power sector. Remember in Zimbabwe,those companies who started feeling the crunch as early as the late 90s started leaving and people could not understand why at that time.

Madzibaba Joshua - 26 August 2015

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