The economy, on the other hand, is described as having “a high degree of macroeconomic stability with strong economic growth, relatively low inflation and falling  1  But before I set out the structure of what I will say, let me first make a general remark.
In order to take account of movements between the currencies of South Africa’s major trading partners, (for example the recent sharp depreciation of the euro against the US dollar), we focus on the effective or trade-weighted exchange rate. Given the difficulties in forecasting the exchange rate, we make a simplifying assumption of a constant real exchange rate over the forecast period.