Conclusion  Critics of our current policy seem to forget these positive developments associated with the recovery in the exchange rate of the rand. I realise, of course, that there have been serious disadvantages, but I must emphasise that the strength of our currency is not directly related to the monetary policy framework that we apply.
We accordingly still belief that an inflation-targeting monetary policy framework allows an independent central bank to commit credibly to its long-term goal of price stability. In such a framework supply and demand in the foreign exchange market must inevitably determine the level of the exchange rate of the rand.