Weak rand can lift exports – Gordhan
The rand’s depreciation might help to boost South African-manufactured exports while raising the government’s borrowing costs “slightly”, Finance Minister Pravin Gordhan said in an interview at the World Economic Forum in Davos on Friday. “The test is for private sector firms to demonstrate their agility and responsiveness to favourable conditions.” The slide is adding to pressure on inflation and may raise the government’s borrowing costs. “We borrow very little from international markets, most of our borrowing is in the domestic market, so there is going to be a slightly higher level of costs which we will talk about in the Budget,” due to be released next month, he said. – Bloomberg