Economists predict stable rand

ALAN PEAT
THE RAND is likely to remain very stable against the currencies of SA’s major trading partners for the next year, according to Goolam Ballim, group economist for Standard Bank. If there is to be any departure point at all, it is most likely to be in the rand/US dollar exchange rate – and this by dollar default rather than the rand’s merit. Ballim forecasts a softening of the dollar which, he said, has already started to depreciate “rather precipitately”. He expects sterling (the GBP), the euro and the rand to all appreciate against the dollar – and roughly in parallel – and in turn to keep SA’s exchange rate stable.