The strains that developed in the foreign exchange market in 1998 caused the exchange rate of the rand and domestic interest rates to adjust automatically to the changed supply of and demand for foreign exchange and the impact of these developments on bank liquidity.
These circumstances have testable implications on decision-making and choice, and should be taken into account when programs are aimed at changing people’s behaviour. 12 Over-reliance on information alone must be prevented. It is necessary to balance the possible approaches, provide clear and accessible information, provide also cognitive instruments to correctly process information and make the appropriate decisions, encourage familiarity with financial issues.