According to reports this morning, the Rand has hit a record low to the Pound – R20,04 to 1 pound. At the same time it also touched its lowest point in 14 years to the dollar - R12,83 to $1.
Stephen speaks to Economist at FNB, Alex Smith, who has said that the weakened Rand is caused by China's decision to devalue the yuan after a string of poor economic data, amongst other factors. Smith says that China is key in terms of global economy and certainly for South Africa's economy, as it is our key export partner.
Smith says that the Rand could fall further, depending on the whether or not the Chinese economy continues to slow, as well as timing of interest rate hikes. He does however project that these will be a strengthening in 12 months time.
Listen to the full conversation below:
This article first appeared on 702 : Why the Rand is so low