For the first time in 14 years South Africa’s rand fell nearly 1 percent against the dollar on Thursday, breaching R13 per dollar.
According to Thomson Reuter’s data this is its weakest since December 2001.
South Africa’s currency is being hurt by lower prices for resources that account for more than half of exports, slowing growth in China.
John Maytham spoke to Dennis Dykes, Chief Economist at Nedbank:
If you are an importer this is very serious because you will find it very difficult to pass on the cost increase that you are faced with in many areas— Dennis Dykes, Chief Economist at Nedbank
If you are an exporter it gives you some relief form some of the factors that are pushing the currency down— Dennis Dykes, Chief Economist at Nedbank
According Dykes the current state of the rand will affect the poor in terms of food pricing and transport.
Listen to the full conversation on the John Maytham Show: