Furthermore, pegging the rand to the US dollar would not imply an automatic peg to other currencies, such as the EUR, which is the currency of our biggest trading partner bloc. Pegging also has the problem that if prices and wages are increasing, any competitive advantage will soon be eroded and there will be calls for changing the peg.
We would have to get used to there can always be crises in one country with contagion in others. If we want to make progress, we need a common economic policy that also covers the field of structural reform. 4  BIS central bankers’ speeches