Cape Town – Nearly 22 million South African citizens have no protection against price volatility and are vulnerable to abrupt macroeconomic instability, economist Dr Iraj Abedian stated in an affidavit on Friday.
“The stability of the value of the currency is critical to their welfare,” he said. “As such the primary mandate of the SARB, as defined by the Constitution, has an extraordinary social welfare dimension.”
"(The) impact of a downgrade to South Africa's long term currency rating would be significant and devastating," he said. "A downgrade would have a disproportionate impact on the most economically vulnerable members of South African society."