THE Namibian dollar, which is linked to the South African rand will close the exchange rate with the US dollar at the end of this year at 10,75.
This is the forecast of
She said the South African Federal Reserve is moving closer to hiking interest rates and said this will keep the rand biased toward weakness over the medium term.
"We see the US Dollar/ Rand exchange rate ending third quarter 2014 at 10,60 and fourth quarter 2014 at 10,75. These target levels represent the mid-points of an expected trading range, and we fully anticipate that the currency will move to extremes above and below these mid-points," said Poultney yesterday.
The rand traded on the backfoot against the dollar yesterday slipping 0,48% from its
Poultney said one risk which she felt could have contributed to some near-term rand weakness was a potential opening of a third renewable energy hedging window in August.
The South African minister of energy, in delivering her budget vote to parliament earlier last week, announced that the financial close deadline has been shifted to
The postponement takes this out as a currency risk factor for now, Poultney said.
Poultney said as long as the tug from deteriorating growth remains so acute, the bank will pause when the inflation outlook and inflation expectations allow; and that any hikes will be measured, to the extent that any deterioration in the inflation outlook or expectations allows.
"We stick with our view that the
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