Question
Question 6 [13] Read the following statement to answer the questions that follow: The rand was weaker against the dollar, despite other emerging currencies appreciating
Question 6 [13] Read the following statement to answer the questions that follow: The rand was weaker against the dollar, despite other emerging currencies appreciating against the dollar.
6.1. Use chain reactions to indicate the relationship between the depreciating rand, SA exports and imports, SA's inflation rate and possible movements in SA interest rates. (4)
6.2. Suppose there is a deficit on the balance of payments. Use chain reactions to indicate how the following will influence the BoP and the value of rand:
6.2.1. Lower international commodity prices (3)
6.2.2. Improved perceptions about emerging markets (3)
6.2.3. Lower interest rates in SA compared with the rest of the world (3)
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