London - South Africa will wait to see if recently unveiled measures to keep the rand competitive and stable work before deciding on further steps to slow short-term capital inflows, Finance Minister Pravin Gordhan said on Friday.
"We have said repeatedly that we would like a stable and competitive currency... The short-term capital flows that are affecting emerging markets are also affecting South Africa," Gordhan told a business forum.
"But South Africa is not the worst-hit," he said.
The rand has strengthened more than 25% against the dollar this year as foreign investors piled into its relatively high-yielding debt.
Gordhan said the government would monitor the impact of recently announced measures to curb the strength of the currency, such as accumulating foreign exchange reserves, before deciding if further steps were required.
The strengthening currency has frustrated government efforts to boost economic growth.
The economy expanded by a surprisingly soft 2.6% annualised in the third quarter, slower than a revised 3.1% growth rate in the second quarter.
http://www.fin24.com/Economy/SA-cautious-on-rand-moves-20101126