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In South Africa, the currency enjoyed a period of strength in early 2022 based on high commodity prices and a different view of risk-on and risk-off. However, events in April showed just how vulnerable the rand remains to both internal and external shocks. “The onset of increased load-shedding and the flooding disaster in KwaZulu-Natal, as ...
D VOLATILITY. IT MATTER?1 Introduction The South African rand has been relatively volatile as the currency has flexibly responded to do. estic and external disturbances. Domestic shocks have been relatively large in recent years, elevating rand volatility to above the VIX (US stock price volatility, a commonly used in. icator of global risk ...
Jun 6, 2016 · Although South Africa is vulnerable in some areas, the results of our analysis on the rand suggest that this is by no means the picture of a country – or currency – that is in the business of ...
Apr 17, 2023 · South Africa’s rand is traded in large volumes globally and is seen as a proxy for emerging market investment. It makes the currency highly exposed to external shocks and, thus, highly volatile. According to the IMF, the rand is one of the most volatile currencies globally compared to advanced economies and emerging market peers.
This paper uses a structural VAR methodology to identify aggregate demand and supply shocks to real output for the South African economy. Demand shocks, in turn, are separated into fiscal and monetary shocks. The model is estimated with quarterly data over two overlapping samples: 1960Q2-2006Q4 and 1983Q4-2006Q4.
(Gadanecz et al, 2018). In South Africa, global uncertainty shocks could depreciate the rand and increase inflation (Mumtaz and Theodoridis, 2015). Uncertainty shocks could be inflationary due also to precautionary increases in prices by firms (Redl, 2015). This paper assesses the impact of rand volatility on inflation in South Africa. The analysis
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Feb 21, 2008 · 0:00. 5:42. Southern African monetary union has benefited members, but now faces challenges. The better countries respond to shocks, the more they stand to benefit. Additional reforms could facilitate adjustment and improve prospects. A lthough Southern Africa's Common Monetary Area (CMA) has facilitated cross-border trade and capital flows and ...
