This action by the Reserve Bank obviously prevented interest rates from rising even further and, if anything, created an artificially low level of interest rates in the country. Perhaps with some justification, this policy of the Bank was recently criticised by the International Monetary Fund.
The Reserve Bank also made a huge amount of forward cover available to South African residents with outstanding commitments in foreign currency, and to non-resident investors with open rand positions in South Africa with the objective of discouraging them from sending more funds out of the country.