South Africa’s rand is overvalued and the central bank needs to weaken the currency, City Press reported, citing the director general of the nation’s trade ministry, Lionel October.
Weakening the currency would ensure the rand was “stable and competitive,” October told the Johannesburg-based newspaper. The rand has gained 7.6 percent this year against the dollar, the third-best performer among the 16 major currencies tracked by Bloomberg. The currency plunged 18 percent last year, the worst of the 16 major currencies tracked by Bloomberg.
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