Recent developments in the monetary situation Since the last week of October, turmoil in the currency and capital markets overflowed the cauldron of certain overheated East Asian economies and disrupted also the South African financial tranquillity.
These developments led to some substantial selling of South African bonds and equities by non-residents, sharp declines in equity prices, volatile conditions in the foreign exchange markets, an increase in the money market shortage and upward pressure on interest rates.