More generally, Thailand’s experience highlights the fact that a half-hearted defense of a fixed exchange rate regime may drain reserves, reduce the credibility of the authorities, and ultimately prove unsuccessful.
In South Africa, headline inflation also remains above the upper end of the target band, though it has been gradually moderating since the latter part of 2022 – primarily driven by a decline in fuel prices from the peaks observed mid-2022. However, we are not completely out of the woods yet.