“Rumors of my death are greatly exaggerated “. South Africa (apologies to Mark Twain)
1. We have had it MUCH worse! In 1985 the Rand went from 1.2 vs $ to 2 overnight due to a speech by then President PW Botha. All international loans were pulled, not just investments as is happening today and extreme trade sanctions were imposed. South Africans are resilient so we buckled down to dig our way out economically. (Unfortunately SA can’t free Mandela again, that really helped)
2. A Picasso on a wall that is valued at a million dollars less is still exactly what it was yesterday. Perceptions have changed yes.
3. This is extremely hard and should have been avoided but there are some pluses to this: > Exports are more competitive and more Rand’s are earned > attractive for foreign tourism post pandemic > Local industry will be stimulated due to import replacement >All hot money fled so future volatility is reduced (you can’t divorce us twice!) > Incentive to repatriate funds
4. Be grateful that : >Most of our debt is in Rands! >Eskom now has sufficient capacity >Our infrastructure and facilities have not suddenly evaporated >Government can’t borrow to fund inefficiency so forced to face up to its challenges Clouds. Silver linings. You’ve got this.