@mlondingubani: South African Reserve Bank Governor Lesetja Kganyago has made some significant statements about the rand's value and alleged manipulation. He recently revealed that the rand is *undervalued by a staggering 57%*, trading at less than half its theoretical fair value, with studies suggesting it should be around R7 to the US dollar, compared to its current trading levels of around R17.40/USD ¹ ². Kganyago framed the rand's weakness as a critical "shock absorber" for the economy, making exports more competitive and providing a cushion for sectors like mining and agriculture. However, he also highlighted that the currency's performance is closely tied to the country's political and fiscal narrative, emphasizing the impact of governance and policy credibility on the rand's value. Regarding manipulation, the governor's comments have fueled public outrage and reignited discussions about alleged collusion among banks. A decade-long lawsuit accuses 28 local and international banks of manipulating the rand/US dollar exchange rate, with the Competition Commission appealing a court ruling that cleared major banks of wrongdoing. Here are the key terms: #Rand manipul #Currency fixing #Price fixing #Repo rate #Inflation

The Elephant In the Room

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Wednesday 29 October 2025 08:49:59 GMT