While these movements of the exchange rate of the rand reduced the international competitiveness of South African producers, it resulted in a decline in the year-on-year change of imported goods over the past 14 months, notwithstanding a significant increase in the international price of crude oil over this period. Goods price inflation therefore moderated further both at the production and consumer level.
In addition, the new rules will provide relief for credit institutions that are less significant in terms of their impact on financial stability. In my opinion, Basel III will bring us a balanced framework that lays the foundations for sustainable economic growth. 5.