Weaker rand fails to stimulate export manufacturing
Sentiment towards the rand has been negatively affected by the deterioration of the current account and wildcat strikes‚ the Medium Term Budget Policy Statement (MTBPS) said.
Released on Thursday‚ the document said the rand's exchange value depreciated from an average from R8.01 to the US dollar in January to R8.62 in October.
The nominal trade-weighted rand was‚ on average‚ 10% weaker in the first three quarters of 2012 compared with the same period a year ago.
The MTBPS said that in real terms‚ the rand was 7% weaker in the first half of 2012 compared with the same period in 2011.
"The weaker rand has so far provided little support for manufacturing export growth‚ which remains subdued in the present economic environment‚" the MTBPS said.