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Vol 38 No 18

Published 12th September 1997


South Africa

Market forces

Despite criticism from the IMF, Pretoria has defended its currency against speculators – unlike some of the Asian Tigers

In the run-up to the annual International Monetary Fund and World Bank meeting in Hong Kong, China, on 23-25 September, two issues have dominated the South African economy. These are external criticism, by the IMF, of the South African Reserve Bank (SARB)'s intervention to protect the rand and internal criticism of government policy from mainstream business, especially of high interest rates, and from the Congress of South African Trade Unions (Cosatu) on the rush to 'liberalisation'. The IMF's criticism of SARB Governor Chris Stals looks like a storm in a tea cup.

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