Speech notes:

In a speech delivered on 23 March 2010, Lesetja Kganyago, Director General of the National Treasury, discusses the role of the South African rand and macroeconomic policy in driving economic competitiveness. He argues that while a depreciated exchange rate can support exports, it is not a 'silver bullet' and must be accompanied by low inflation, productivity growth, and microeconomic reforms to be effective.

• The nominal value of the rand has been more competitive in the 2000s than in the 1990s. The R/$ exchange rate was R7.35 at the time of the speech, compared to an average of R3.90 in the 1990s and R6.11 in 1999.
• Macroeconomic stability achieved since the 1990s led to lower inflation, lower public debt, and lower interest rates. Average prime interest rates fell from 18.9% in the 1990s to 13.2% in the 2000s, while economic growth rose from 1.6% to 3.5% over the same periods.
• The South African government shifted its exchange rate management strategy over time, moving from using a 'forward book' to sustain the currency value (closed in 2004) to a floating exchange rate and the accumulation of foreign currency reserves to maintain competitiveness.
• Capital inflows, primarily in equities, have supported economic growth by financing the current account deficit and lowering the cost of capital for firms, including commodity exporters, but they have not caused deindustrialisation.
• A depreciated exchange rate only leads to increased GDP and a structural shift toward traded goods if it is paired with low domestic inflation or rapid increases in labour productivity.
• The National Treasury rejects a fixed exchange rate regime, arguing it would force South Africa to surrender monetary sovereignty and remove the exchange rate's ability to act as a shock absorber for terms-of-trade changes.
• To achieve long-term competitiveness, South Africa requires a combination of macroeconomic prerequisites—such as a fiscal exit strategy to lower dissaving and inflation targeting—and microeconomic reforms to remove product and factor market rigidities.

APA

South African Institute of International Affairs (n.d.). Speech notes:. https://saiia.org.za/wp-content/uploads/2010/03/dttp_workshop_treasury_director_general_speech_20100323.pdf

Chicago

South African Institute of International Affairs. Speech notes:. n.d. https://saiia.org.za/wp-content/uploads/2010/03/dttp_workshop_treasury_director_general_speech_20100323.pdf.

Wikipedia

{{cite press release |author=South African Institute of International Affairs |title=Speech notes: |url=https://saiia.org.za/wp-content/uploads/2010/03/dttp_workshop_treasury_director_general_speech_20100323.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@misc{southafricaninstituteofinternationalaffairsndspeech, author = {{South African Institute of International Affairs}}, title = {{Speech notes:}}, publisher = {South African Institute of International Affairs}, url = {https://saiia.org.za/wp-content/uploads/2010/03/dttp_workshop_treasury_director_general_speech_20100323.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }