ZAR remains vulnerable

Trade report 04/06/2013

In the latest monetary review policy report released by the South African Reserve Bank (SARB) on Tuesday, the recent moderation of food prices may be reversed as the recent exchange rate movements have raised the probability of further petrol and food increases. “The exchange rate poses an upside risk to food inflation as prices of agricultural commodities such as wheat and maize are based on international prices," a SARB representative said.

In international news the European Union (EU) decided, on Tuesday, to impose tariff increases as high as 67.9% on solar panels from China in an attempt to revive a withering industry in Europe. The duties have been instated as a way of punishing China for allegedly selling the panels in the Eurozone at below cost price, a practice known as dumping. This particular case is the largest trade case that the commission has taken on, with approximately €21bn of China-made solar panels sold in the EU.

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