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May 20, 2019 · The results suggest that the exchange rate tends to act as a shock absorber to the shocks that hit the economy; a large proportion of the variation in the rand can be explained by other shocks, while rand shocks themselves explain a relatively small proportion of South Africa’s macroeconomic volatility. That said, the role that the exchange ...
Jul 23, 2019 · The results suggest that the exchange rate tends to act as a shock absorber to the shocks that hit the economy: a large proportion of the variation in the rand can be explained by other shocks, while rand shocks themselves explain a relatively small proportion of South Africa’s macroeconomic volatility.
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 ...
inflows opportunistically. The right panel illustrates that South Africa has been using the rand, rather than official reserves, to absorb shocks––volatility of the rand is relatively high, while that of official reserves relative to M1 is one of the lowest among EMs.
- Ken Miyajima
- 2019
May 26, 2020 · Over the last 10 years South Africa has had a very weak domestic economy with a deteriorating sovereign balance sheet and this lack of growth and the debt trajectory that threatens to take us off the fiscal cliff is impacted the Rand. Continues Gracey; “Ideally currency needs to be your shock absorber in the system.
Dec 13, 2019 · The right panel illustrates that South Africa has been using the rand, rather than official reserves, to absorb shocks––volatility of the rand is relatively high, while that of official reserves relative to M1 is one of the lowest among EMs.
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Apr 17, 2023 · The South African Reserve Bank (SARB) tried to absorb the external shocks to the currency and prevent them from affecting the local economy. It does this by tightly regulating the financial sector to ensure it is sound and well-capitalised, while the National Treasury minimises the effect of these shocks by ensuring the majority of South Africa’s debt is rand-denominated.
