Of particular significance for monetary policy has been the movement in the value of the rand. There has been a steady depreciation in the currency over the last five years.
The rand depreciated by approximately 30 percent against the dollar in 2015, reaching historical lows in December 2015 mainly as a result of an adverse market reaction to domestic political developments associated with changes in the finance ministry. While the rand exchange rate has recovered from the lows experienced in December 2015, it remains volatile and vulnerable to domestic and external developments.