South Africa's Rand Is Just About Where It Should Be, REER Shows
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The rand’s 13 percent slump this quarter has left South Africa’s currency fairly valued, according to its real effective exchange rate.
The rand’s REER as measured by the Bank for International Settlements is now equal to its 10-year average, meaning it’s neither over- nor undervalued when benchmarked against a basket of other currencies over the long term.