An insightful and well written piece. The question about the mandate of the Reserve Bank is valid and the debate should take place. Just not now.

The following does apply: The SARB is almost completely powerless to protect the value of the Rand against other currencies . The Rand is extremely liquid and most trades take place outside South Africa. The volume of trade that takes place in the Rand is disproportionate to the size of the SA economy. The Rand value against other currencies is determined by sentiment towards the country (economical and political) and by the fact that it normally forms part of a "basket" of emerging market currencies. It is thus not only influenced by sentiment towards the SA economy and politics, but also to that of other emerging market economies (and politics). Thus a coup in Turkey could spark a run on the Rand. The Turkish Lira is traded much less than the Rand and far less liquid. So you reduce emerging market exposure by selling the Rand. Cont..