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By Alec Hogg
If you can keep your head while all around are losing theirs…
The opening line of Rudyard Kipling’s famous poem was written more than a century ago to encourage Dr Leander Starr Jameson, imprisoned in Pretoria, after his aborted “Raid”.
The same line might be equally apt for Pretoria’s modern inmates after the Rand yesterday briefly traded over 14 to the US Dollar, a fresh record low for the embattled currency.
Peter Attard Monalto of Nomura in London said the Rand’s pummelling came after global focus shifted onto Emerging Market fundamentals “which found SA wanting; as well as SA’s domestic idiosyncratic story, which has been found wanting.”
He’s surely right. But this is not the time to panic. Especially not if you’re at the SARB which controls the country’s meagre national reserves.
China tried to fight the markets by propping up its currency and stock markets and lost a staggering $400bn. Best to keep our heads. This too shall pass.
From Biznews community member Ian Cruickshanks
"Your sensible message, but if you have not yet panicked, you may not
understand the severity of the situation!!"
From Biznews community member Yusuf Alli
"After the horse has bolted from the stable now the government imposes a 10% hike on steel imports, is this not again a bit too late to take drastic action? The damage has been done to the economy as well as the tourism industry as they are well aware of but have blinkers on."
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