Johannesburg - The rand’s 16 percent slide against the dollar this year is benefiting exporters and South African authorities don’t have the resources to influence the currency, Finance Minister Pravin Gordhan.
“There are some signs that the more agile exporters are taking opportunities now that they couldn’t take two years ago or a year ago,” Gordhan said today in an interview in London on Bloomberg TV’s ‘The Pulse’ show.
“We would appreciate less volatility, particularly for players in the real economy who require more stability, more certainty.”
The rand slump this year and its implied volatility against the dollar is the highest of 16 major currencies monitored by Bloomberg. The rand fell 0.3 percent to 10.0180 per dollar as of 12:17 p.m. in Johannesburg.
Countries that have tried to intervene in foreign exchange markets to manage their currencies “lost a lot of money,” Gordhan said. “We do not have those sorts of resources in the South African case,” he said.
Gross reserves increased 4.3 percent to $50 billion in September after the government sold $2 billion of Eurobonds, the central bank said today. That compares with $376 billion in Brazil.
While it’s “regrettable” that strikes in some industries in recent weeks took longer to be resolved than expected, many of the settlements are for three years, providing stability, Gordhan said. - Bloomberg News