During the past year, while volatile, the rand has been relatively resilient, considering the adverse shocks it has had to face. At current levels, it is still stronger than it was at this time last year.
The local currency has been supported by the significant improvement of the current account of the balance of payments, favourable terms of trade, and the generally positive capital flow environment for emerging markets. The rand has been adversely affected by low growth, political and policy uncertainty, and  Page - 4 - of 11  the credit ratings downgrades.