Besides, if the factors responsible for the weakness in the exchange rate are taken into consideration it seems unlikely that a tightening of monetary policy would have the desired effect of more stability in the foreign exchange market. The policy stance adopted by the authorities does not imply that the value of the exchange rate is regarded as unimportant when setting monetary policy.
On the contrary, the impact of exchange rate changes on inflation is carefully taken into account when managing domestic liquidity and determining the repo rate. If signs do emerge of increased inflationary pressures arising from a depreciation of the exchange rate of the rand, the Reserve Bank will not hesitate to take appropriate measures. BIS Review 40/2000  4  6.