Discuss and explain what factors, over the past 10 years, has contributed to South Africa’s...

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Discuss and explain what factors, over the past 10 years, has contributed to South Africa’s weakening Rand against the US Dollar?
Discuss and explain what measures can be put in place to ensure South Africa’s weakening currency ( Rand) doesn't affect the countries prospective economic growth?

Akash · Accepted Answer

SOUTH AFRICAN CURRENCY (RAND) VS U.S DOLLAR
Factors contributing to weakening of Rand against USD
According to Rangoanana and Bonga-Bonga (2020), there has been a significant decrease in the value of currency of South Africa (Rand) against the USD. Among the globally accepted currencies, USD seem to be the most prominent one. Most of the global dealing are done in USD. There are multiple factors that have an impact on the value of a currency. Such factors include supply & demand of a currency, Availability of the currency, inflation & interest rates, economic performance of the trading partners, political situation and economic surprises. 
Major reason behind the decline in value of Rand against Dollar are issues in the mining sector of South Africa. According to Leith (2020), mining sector of South Africa along contributes to 8% of the GDP of South Africa, indicating the impact of the mining sector on South African economy. In the recent times, the mining sector of South Africa is under extreme pressure due to internal conflicts. Adding to that,

Discuss and explain what factors, over the past 10 years, has contributed to South Africa’s weakening Rand against the US Dollar? Discuss and explain what measures can be put in place to ensure South...

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