Peg rand to dollar to thwart speculators

NOW that the rand has come down to well below R13 to the dollar, wouldn’t it be expedient of the finance minister and Reserve Bank to fix the rate against the dollar?

Many countries do it, including China, and the fixing can be changed from time to time as necessary.

The volatility of the rand has little to do with supply and demand, and a huge amount to do with speculation. It is simply too easy to deal in the rand, and people are making a fortune by “betting” against the currency.

A fixed rate would stabilise exporters and importers, and the oil price. Real currency dealers would know where they stand from day to day, and it would eliminate hedging. — Bill Donaldson, Knysna