As indicated before, the Bank remains committed to a flexible exchange rate regime, with the exchange rate determined primarily by the market. The commitment to a flexible exchange rate should, however, not be misunderstood as an indifference towards the exchange rate.
The rand is one of the most volatile currencies and the Bank is cognisant of the impact that this can have on business, and the uncertain operating environment it creates. Extended periods of misalignment can lead to a misallocation of resources between sectors within the economy and lead to an uneven and unbalanced economic recovery.