DEVALUING would be a "very short-sighted" move for South Africa to make, International Monetary Fund managing director Dominique Strauss-Kahn said yesterday.
Cosatu, an ally of the ruling ANC, has called on the SA Reserve Bank to widen its inflation targeting mandate and wants a much weaker rand to help boost local industries and create jobs.
Strauss-Kahn said any policy measures that led to a weakening of the rand would scare off the foreign investors and capital that are needed to fund the country's current account deficit.
The rand gained about 30percent against the dollar in 2009 and is considered relatively strong at its current levels of about R7,40/$.
Late last year the South African government expressed concern about the currency's strength and in February Finance Minister Pravin Gordhan said he would like to see less volatility in the rand. - Reuters