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Well, sure, when you manipulate the forex market, you can act to alter the value of your own currency.

Synaesthesia 6y ago
I sure wish we could do that (South Africa), instead our currency is at the whims of international finance and investors, which makes it highly unstable. We could also use exchange controls to arrest our capital flight which is just draining us.
- cerberusss 6y ago
  Exchange controls at some point will fail. See also what's happened to the Lebanese pound.
- easytiger 6y ago
  You do realise that even the concept of discussing the desire for capital controls are an exemplary reason to undertake capital fight? The trajectory of the current South African de facto Kleptocratic ruling party should worry anyone. One might argue the currency fluctuations are the result of endemic policy failure in every aspect of the South Africa governance. A result of a ransacked economy, stolen in the guise of altruism by a corrupt ruling cabal. Closing the economy, removing the scrutiny of outside participants, will only seek to further assign it the moniker as yet another basket case economy
- toyg 6y ago
  Exchange controls are a decent way to admit defeat and start rebuilding only if your economy can work without external investment, or is so attractive that foreign investors are willing to risk never getting their money back. It worked in China only because the size of the country is such that it can basically do anything alone if it wants to, and the outlook was so "inevitably" good (again because of size) that investors were ready to risk it all. Is SouthAfrica in that position? I doubt it. Imho a wave of capital restrictions in SA would trigger a Zimbabwe-like crisis, making it official that it's all gone to the dogs.
082349872349872 6y ago
The Plaza Accord was instigated by the US. But that was the 1980s; these days, when a safe-haven country attempts to keep Francs from appreciating (which should be under our control) due to sabre-rattling by China and the US (not under our control), we get placed under the double secret probation. https://www.swissinfo.ch/eng/swiss-franc-climbs-after-us-adds-it-to--manipulation--watchlist/45494856 https://www.swissinfo.ch/eng/swiss-franc-climbs-after-us-add... (why is the US treasury telling us what to do? We've attempted to adjust against EUR, so if you all don't like USD/CHF why don't you all work the USD lever instead?)
econcon 6y ago
But isn't majority of central banks have ability to control value of their currency using various means.

I sure wish we could do that (South Africa), instead our currency is at the whims of international finance and investors, which makes it highly unstable. We could also use exchange controls to arrest our capital flight which is just draining us.

cerberusss 6y ago
Exchange controls at some point will fail. See also what's happened to the Lebanese pound.
easytiger 6y ago
You do realise that even the concept of discussing the desire for capital controls are an exemplary reason to undertake capital fight? The trajectory of the current South African de facto Kleptocratic ruling party should worry anyone. One might argue the currency fluctuations are the result of endemic policy failure in every aspect of the South Africa governance. A result of a ransacked economy, stolen in the guise of altruism by a corrupt ruling cabal. Closing the economy, removing the scrutiny of outside participants, will only seek to further assign it the moniker as yet another basket case economy
toyg 6y ago
Exchange controls are a decent way to admit defeat and start rebuilding only if your economy can work without external investment, or is so attractive that foreign investors are willing to risk never getting their money back. It worked in China only because the size of the country is such that it can basically do anything alone if it wants to, and the outlook was so "inevitably" good (again because of size) that investors were ready to risk it all. Is SouthAfrica in that position? I doubt it. Imho a wave of capital restrictions in SA would trigger a Zimbabwe-like crisis, making it official that it's all gone to the dogs.

082349872349872 6y ago

The Plaza Accord was instigated by the US. But that was the 1980s; these days, when a safe-haven country attempts to keep Francs from appreciating (which should be under our control) due to sabre-rattling by China and the US (not under our control), we get placed under the double secret probation. https://www.swissinfo.ch/eng/swiss-franc-climbs-after-us-adds-it-to--manipulation--watchlist/45494856 https://www.swissinfo.ch/eng/swiss-franc-climbs-after-us-add... (why is the US treasury telling us what to do? We've attempted to adjust against EUR, so if you all don't like USD/CHF why don't you all work the USD lever instead?)

econcon 6y ago

But isn't majority of central banks have ability to control value of their currency using various means.