It is clear that there is an urgent need for countries to consolidate their fiscal positions and bring their public debt ratios and fiscal deficits back to within more sustainable parameters. Domestic financial markets These developments are important for South Africa, being a small and open economy with deep and liquid financial markets.
Against the backdrop of the stronger global and domestic economic environment, domestic financial markets also rallied in the latter part of 2009. The ZAR appreciated by almost 23% per cent on a trade-weighted basis in 2009, reversing the 23.5% decline recorded in 2008.