Exchange rate management policies in South Africa : recent experiences and prospects.

Abstract

The purpose of this paper is to describe the exchange rate system that is applied in South Africa. As a general background to this discussion, the development of the exchange rate system in South Africa since the Second World War is first examined in some detail in the next section. This is followed by an outline of the current South African exchange rate system and prospective changes to this system in section 3, and of the institutional arrangements in section 4. The next three sections deal with the Common Monetary Area, the effectiveness of the exchange rate system and the macro-economic impact of changes in the exchange rate of the rand. Finally, a few concluding observations are made in section 8.