Of course, this could not last indefinitely. With imports becoming horrendously expensive and with South African exports extremely price-competitive, supply and demand fundamentals came to the fore and the exchange rate had to turn around. From the beginning of 2002 to date the rand has appreciated by 24 per cent against a basket of currencies.
To illustrate what happened to the rand's international purchasing power, in terms which may be diplomatically familiar: a 25 pound dinner in a London restaurant would have set a South African diplomat back R280 at the beginning of 2001. Just before Christmas 2001, it would have cost the diplomat R500. Today, the same meal's bill will amount to R360.