On a nominal effective exchange rate (NEER) basis, the rand has only depreciated marginally. 3  and will lead to stronger investment rates over time. Foreign and domestic capital have always played key roles in providing the financing of South Africa’s needs.
In the years of the global financial crisis and in the early weeks of the pandemic, risk aversion resulted in the sale of rand assets by foreign investors. This was complemented by resident savers shifting out of their foreign asset holdings and back into rand assets.