Did Zuma destroy the Rand?

2015-08-14 13:44

The Rand touched R12.88 to the US Dollar today, bringing the 2015 depreciation to 11.6% and the last 12 months to a gut wrenching 22%. The Rand is effectively the share price of SA,Inc and the natural response to this kind of depreciation is to blame the current administration. Under the Zuma administration, the R/$ exchange rate has risen a staggering 54 percent so far!

Did Zuma destroy the Rand? The answer is "Yes, but..."

At 54% rise in the exchange rate to the dollar during Zuma's tenure, the answer to the above question is a definite "Yes". However, EVERY pre and post-apartheid SA President since PW Botha has presided over a Rand slide. Nobody, except maybe Thabo Mbeki escaped a large depreciation. Given that Thabo Mbeki ran for just under 2 terms it is rather remarkable how the Rand held up during his tenure. In the 31 years since PW Botha's apartheid regime, the Rand exchange rate has risen 675% against the dollar, or 6.8% per annum compounded.

Below is an info-graphic showing the absolute and annual compounded rise in the R/$ exchange rate during the terms of the last 6 SA presidents:

Every president was in office for different amounts of time, some reaching (but not yet completing) two terms. For this reason it is more fair to examine the Rand/$ rate appreciation per annum during their tenures to compare apples with apples, as with the bottom of the info-graphic.

The Zuma administration is currently the third worst at 7.1% per annum compound, but it has three years left in its term and if the long term depreciation rate of the Rand remains in place, the Zuma administration would have presided over the worst Rand slide of 86%, worse than the 69% of the now infamous PW Botha.

News24 Voices Terms & Conditions.

Join the conversation!

24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

We reserve editorial discretion to decide what will be published.
Read our comments policy for guidelines on contributions.
NEXT ON NEWS24X

AB praises selfless skipper

2010-11-21 18:15

Inside News24

 
/News
Traffic Alerts

Jobs in Cape Town [change area]

Jobs in Western Cape region

HSE Manager

Cape Town
Tumaini Consulting
R550 000.00 - R650 000.00 Per Year

Reporting Accountant

Cape Town
Network Finance Professional / Prudential
R310 000.00 - R360 000.00 Per Year

IT Manager (contract)

Cape Town CBD
Communicate Cape Town IT
R330 000.00 - R458 000.00 Per Year

Property [change area]

There are new stories on the homepage. Click here to see them.
 
English
Afrikaans
isiZulu

Hello 

Create Profile

Creating your profile will enable you to submit photos and stories to get published on News24.


Please provide a username for your profile page:

This username must be unique, cannot be edited and will be used in the URL to your profile page across the entire 24.com network.

Settings

Location Settings

News24 allows you to edit the display of certain components based on a location. If you wish to personalise the page based on your preferences, please select a location for each component and click "Submit" in order for the changes to take affect.




Facebook Sign-In

Hi News addict,

Join the News24 Community to be involved in breaking the news.

Log in with Facebook to comment and personalise news, weather and listings.