The South African rand Price Forecast: US Stimulus Hopes to Sustain ZAR is a market report on South Africa’s currency exchange rate against the U.S. dollar and other major currencies. It was created by financial analysts, who have a deep understanding of the workings of the South African currency exchange rate, as well as the economic conditions of South Africa.
This report is designed to provide a reliable forecast for how the currency exchange rate in South Africa is likely to move against other currencies in the coming months, and years. In fact, the report forecasts that it will rise. That said, some of the analysts who have created this market research report have been saying that the South African rand price forecast: US stimulus plans are not likely to succeed.
In an editorial published in The Times, an American newspaper, an American-based financial analyst has said that the South African rand is unlikely to be able to sustain its current high value and, therefore, it will be impossible for the United States to use the South African rand to support its economy. According to him, “South Africa is already at risk from rising unemployment, poor export figures and faltering mining sector, making it difficult to maintain its currency peg.”
He said, “As the country begins to recover from a recession, the economy may well become unbalanced, and the government may find itself unable to control inflation.” He also said, “South Africa is a major investor in Africa, so if its economy recovers, then other South African industries are likely to suffer.
This is a valid point and there are many other analysts in South Africa who say that the economy is suffering because of the fall in the value of the South African rand, and the subsequent weakening of the South African currency. But, it is still a possibility that the South African rand might become stronger.
In his article, the American author makes a few criticisms of the US Administration’s plan to increase the amount of money that it spends on South Africa. He says that the US Government needs to spend money on things that will benefit the American people, and that it should not resort to using the South African rand to do so.
The author goes on to say that although he has seen some positive signals from the rand, he does not think that South Africa’s economy will ever recover because of the negative outlook that the US Government has placed on the economy. He says that the US has not provided any solid reasons why it needs to boost the economy.
In summary, I agree with the author’s analysis of the South African rand’s value and the possibility that it will not be able to sustain its current level, or perhaps not at its current value. However, the author also makes a valid point that the US Government should have considered whether it is worth the money spent on the stimulus plan.
Indeed, this is something that the US Administration should have thought about before embarking on such a program. If the US were to increase its spending on South Africa, would it be better for it to increase its spending on other countries like China and Japan? It could be that it would be better to spend money on things like education and infrastructure in other countries.
So what happens now that the US Administration is thinking about putting more money into the South African economy? Well, we will probably see more bad economic news and probably more bad news about the economy in the United States.
One possible positive news about the South African rand is that it might go up again in value. but I think that it will take quite some time before it gets back up to where it was before the US stimulus plan was introduced.
Indeed, I hope that you will please consider all this and think on it. If you have time, please write me an e-mail and let me know your views and opinions on the economic situation in South Africa.