Rand recovery spells good news for South African FX

Since plumbing the depths of a lifetime low of nearly R14 per dollar in December 2001, the currency has strengthened by 44% and was last week trading at around R7.8. The slide, which took place throughout most of 2001, led the government to make an official inquiry into speculative trading, which is strictly outlawed under South African FX regulations.

During the downturn, rand trading volumes shrank, creating a "one-way" market in which it was almost impossible to reverse the currency’s sli