the rand remains unstable

despite the increase in the mining production to 12 percent year on year in December after a revised 5,2 percent (5,1 percent) y/y increase in November‚ data released by Statistics SA, the rand remained weaker across the board at midday yesterday, despite relatively good local mining production figures for December. Short-term panic may have receded in the emerging markets, but the underlying problems with the current account deficits remain. Sentiment is also fragile; emerging markets could easily run again on a fresh bout of negative news.

 At 11.55am, yesterday, the rand was at R11,0758 to the dollar from Wednesday’s close of R10,9962.Against the euro, the rand was at R15,1496 from its previous close of R14,9352 and was at R18,4407 against the pound from R18,2542 overnight.

 we are trying to improve the out puts from our industries but the economy is not improving. for example, mining production rose 4 percent in volume terms in 2013 compared with a 3,2 percent decline in 2012.this shows that there is an improvement in both the machinery and the skills are improving too.

however the ever changing  exchange rate of the rand is affecting the lives of many Zimbabweans. l empathise with all the cross boarder traders who get their income in Rands and when they have them in their hands they would think that they have a lot of money. trouble rise when they switch to the US dollar....only a little money is left in their pockets.

they will have to pay bills and buy groceries. many of these people will  decide to buy their food stuffs in South Africa despite the fairly food prices in the country. again some people in the country still remain poor as they live on one dollar which is usually equivalent to 10 rands or less due to the fluctuating exchange rates.

 at the same time, the rain seasons sometimes bring relief to many house holds. with more rain, comes more food for every one.  there will be more options of bringing food at the table but when it is now the dry season. life is hard for every one.all will be wishing  for some stability in the currency they  use.