He says talk of the economy needing more foreign investments to balance the shortfall in exports is "nonsense" and "that's what's been propping up the rand".
"When the situation changes... and funds get with withdrawn, the rand crashes."
He said that putting the investment and the trading cash flows through the same pipeline is a major concern. "Your currency price can only adjust to one of those two things."
Listen to the full interview to hear which cash flow would be best:More by Edward Ingram:
When people feel safe with their mortgage; business loan or pension savings then they will likely take investment risks.
Buying into the trend can help to beat the market.
- Fin24