Currency manipulation generally refers to the deliberate interference in the foreign exchange market by a country to gain an unfair advantage, often through actions like artificially devaluing or manipulating its currency.
South Africa, like any other country, may experience fluctuations in its currency value due to various factors such as economic indicators, political stability, trade balances, and global market conditions
On the 22nd of November, news broke out that South African banks had been manipulating the South African rand. This means the South African middle class is “losing” over R10,000 every month. According to Business Tech, this means the basic middle-class income taken home R15,620 a month should be roughly earning R26 122 today to have the same purchasing power they had in 2016, this equates to a loss of R10 499 per month.
Currency manipulation can have significant implications for global trade and economic relationships. It is a contentious issue, and accusations of currency manipulation can lead to tensions between countries. The International Monetary Fund (IMF) and other international bodies often monitor and assess currency practices to promote fair and transparent economic policies.
However, this is an extremely nuanced thing that needs to be fully explained by economists as it is not easily transferable knowledge. The economic conditions in South Africa are currently bad. There is currency manipulation saga started in May 2015, when the commission alleged that banks colluded to rig the value of the rand against the dollar. The inquiry followed a global probe into currency manipulation that was exposed two years earlier, triggering investigations in the US and the UK, and resulting in billions of dollars in settlements.
How can we stop this, the ANC is claiming they had no idea this was what was happening and they are going further with their lies by contesting that Banks need to pay a higher penalty for this currency manipulation case, however, we are not buying it!
As Arise South Africa, we would like the proper authorities to fully investigate what has happened and tell us how we can avoid such heinous crimes of corruption!