Long term value of the rand

Before 1982, the rand was worth more than the US dollar. Since then,  the rand has depreciated relative to the dollar at an average of over 8% per year. After being triggered by political pressure and sanctions, depreciation gained momentum as a result of a divergence in inflation in South Africa and major economies (see second chart). The difference between South African and US inflation averaged around 5.5 percentage points since 1982.

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