We should not, just because of sentimental reasons, make use of a new freedom to invest funds abroad when a local investment will serve our needs better and more effectively. 4. Monetary policy in an environment of no exchange controls The new situation brings new challenges also for monetary policy.
The depreciation of the rand last year, and the appreciation of almost 10 per cent since November 1996, gave us a taste of the new exposures of our financial system to the global markets. If South Africa wants to be part of the global village, we shall have to abide by the rules of the international markets.