OPINION: Riding out the volatility of the rand
JOHANNESBURG –
The rand is one of the world’s most volatile major currencies, at the mercy of both local political developments and international market movements.
The rand is one of the world’s most volatile major currencies, at the mercy of both local political developments and international market movements.
Understanding the factors that move the exchange rate between the rand and other major currencies as well as the longer term trends; is the key to creating a financial plan that can weather the volatility.
Let’s start by considering how the international political and economic climate affects the value of the rand. Because the rand is one of the more liquid and heavily traded emerging market currencies, the South African currency is sensitive to a range of international factors beyond the control of the government.
Source: iol.co.za