Answer to Question #224668 in Economics for Lina

Question

How has South Africa dealt with floating exchange rate over the last one year?

Answer 1

Since 1979, the South African currency has been floating. Moreover, in the periods from 1979 -1983. and from 1985 to 1995. in South Africa, there was a double currency market with the simultaneous application of a fixed and floating exchange rate against the US dollar, depending on the nature of the transactions.

The South African Rand is one of the eight most popular currencies traded on the international Forex market. The movement of the South African rand depends on the demand for precious metals and raw materials: since South Africa is the world's largest exporter of gold and diamonds, the increase in their prices supports the South African currency.