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Article: Opinion divided on strength of rand: opinions on the strengthening South African rand are almost equally divided--some see it as a sign of confidence in the country; others as a short-cut to economic disaster. Who is right? Tom Nevin has been finding out.(South Africa)
- Article from:
- African Business
- Article date:
- August 1, 2004
- Author:
CopyrightCOPYRIGHT 2004 IC Publications Ltd. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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This is another fine mess you've gotten us into, Stanley," as Oliver Hardy famously used to say to his side-kick, Stan Laurel in the 1950s comedy series, Laurel and Hardy. It could be South Africa talking to its currency.
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As the rand, against all prediction, continues to strengthen, breaking through the R6:$1 barrier in mid July, it has tossed more than one large cat amongst South African economic pigeons. It has also divided the country into two contradictory camps--those who think the strong rand is good for the country and those who are certain it is a disaster.
In his determination to meet a 3%-6% inflation rate ...