Of significance perhaps is the fact that while since the beginning of the year the rand has depreciated by about 10 per cent against the US dollar, the Chilean peso has appreciated by around 4 per cent against the dollar.
Given that Chile is a major competitor of South Africa in the European fruit market in particular, these developments are seen to give our fruit farmers a significant competitive advantage. It is sometimes argued by some commentators and researchers that a weaker exchange rate is in the long-term interest of the export sector. This is a fallacy.