Exchange rate issues South Africa runs a sizeable current account deficit on its balance of payments. This implies that we import more from the rest of the world than we export. For 2007 this deficit amounted to 7,3 per cent of GDP. This deficit has been sustainable because foreign investment attracted to the country has exceeded the deficit on the current account.
Given our strong infrastructural expenditure programme and high crude oil prices, our import demand is expected to remain strong. This means that we have to continue to rely on continued capital inflows, or else we need to improve our export performance. Clearly, from a sustainability perspective the latter would be preferable.