There has, however, been a change in the pattern of these flows, which are now predominantly into bond markets rather than into equity markets. In South Africa, for example, since the beginning of 2011, non-residents have been net purchasers of bonds to the value of R51 billion, but have been net sellers of equities to the value of R8 billion.
Given the prospects for a protracted period of low interest rates in the advanced economies, these flows are expected to continue, although are likely to become more volatile and uncertain during episodes of heightened risk aversion. Monetary policy has remained relatively accommodative in response to these developments.