In the coming weeks the effects of the dramatically weakened rand will ripple through the economy‚ fuelling inflation and price hikes and hitting the poor hardest.
On Tuesday‚ the rand had recovered after a mauling on Monday and was at just over R13 to the dollar. The currency strengthened on news of a Chinese interest rate cut after heavy selling had pushed it to an historic low of R14/$.
The rand has shed nearly 15% of its value against the dollar this year‚ pressured‚ like other emerging-economy currencies‚ by slowing growth in China‚ the world’s second-biggest economy‚ and expectations that US interest rates will rise soon.
Another blow to South Africa’s economy on Tuesday was the news that the gross domestic product had shrunk 1.3% in the second quarter of this year.
Three consecutive quarters of contraction define a recession.
It's the economy‚ stupid‚ and it's bust
In the coming weeks the effects of the dramatically weakened rand will ripple through the economy‚ fuelling inflation and price hikes and hitting the poor hardest.
On Tuesday‚ the rand had recovered after a mauling on Monday and was at just over R13 to the dollar. The currency strengthened on news of a Chinese interest rate cut after heavy selling had pushed it to an historic low of R14/$.
The rand has shed nearly 15% of its value against the dollar this year‚ pressured‚ like other emerging-economy currencies‚ by slowing growth in China‚ the world’s second-biggest economy‚ and expectations that US interest rates will rise soon.
Another blow to South Africa’s economy on Tuesday was the news that the gross domestic product had shrunk 1.3% in the second quarter of this year.
Three consecutive quarters of contraction define a recession.
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