{"id":7765,"date":"2012-02-08T13:49:49","date_gmt":"2012-02-08T11:49:49","guid":{"rendered":"http:\/\/www.myza.co.za\/02\/update-1-s-africa-moots-mining-wealth-fund-to-cap-rand-gains\/"},"modified":"2012-02-08T13:49:49","modified_gmt":"2012-02-08T11:49:49","slug":"update-1-s-africa-moots-mining-wealth-fund-to-cap-rand-gains","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/update-1-s-africa-moots-mining-wealth-fund-to-cap-rand-gains\/","title":{"rendered":"UPDATE 1-S.Africa moots mining wealth fund to cap rand gains"},"content":{"rendered":"<p>\t\t<span><\/span><\/p>\n<p>* Rand extremely volatile<span><\/span><\/p>\n<p><span><\/span><\/p>\n<p>* Exporters have blamed rand for poor performance<\/p>\n<p> (Adds details, background, quote)<\/p>\n<p><span><\/span><\/p>\n<p><span class=\"articleLocation\">JOHANNESBURG<\/span> Feb 8 (Reuters) &#8211; South Africa&#8217;s ruling<br \/>\nANC is considering starting a sovereign wealth fund from<br \/>\nproceeds of a proposed new mining tax that could be used to<br \/>\nintervene in the market to cap gains in the rand currency in<br \/>\ntimes of a commodity boom.<\/p>\n<p><span><\/span><\/p>\n<p>Such a move would be a departure from current policy under<br \/>\nwhich the Reserve Bank does not actively intervene in the market<br \/>\nto target a level for the rand&#8217;s exchange rate.<\/p>\n<p><span><\/span><\/p>\n<p>A study on mining sector reforms submitted to the African<br \/>\nNational Congress, a copy of which was obtained by Reuters on<br \/>\nWednesday, proposed the introduction of a &#8220;resource rent tax<br \/>\n(RRT) of 50 percent&#8221; on all mining.<\/p>\n<p><span><\/span><\/p>\n<p>&#8220;The RRT proceeds should ideally be kept in an offshore<br \/>\nSovereign Wealth Fund to ameliorate the strengthening of our<br \/>\ncurrency during commodity booms,&#8221; it said.<\/p>\n<p><span><\/span><\/p>\n<p>Manufacturers blamed the currency for poor export<br \/>\nperformance when the rand gained about 30 percent against the<br \/>\ndollar in the two years to end-2010.<\/p>\n<p><span><\/span><\/p>\n<p>The rand subsequently lost about 20 percent in 2011 but<br \/>\nmanufacturers have previously said they would like the rand<br \/>\ntrading at around 8.50, compared to 7.55 last on<br \/>\nWednesday.<\/p>\n<p><span><\/span><\/p>\n<p>The rand is a heavily traded currency that is given to wild<br \/>\nswings in line with changing investors&#8217; sentiment.<\/p>\n<p><span><\/span><\/p>\n<p>Gross foreign exchange reserves of $51.45 billion at the end<br \/>\nof January do not give the central bank enough firepower to have<br \/>\nan impact in the foreign exchange market in which more than half<br \/>\nof trades on the rand are offshore.       \t<\/p>\n<p> (Reporting by Phumza Macanda)<\/p>\n<p><span><\/span><\/p>\n<p class=\"copyright\">\n<p>         \t\t\u00a9 Thomson Reuters 2012 All rights reserved<\/p>\n","protected":false},"excerpt":{"rendered":"<p>* Rand extremely volatile * Exporters have blamed rand for poor performance (Adds details, background, quote) JOHANNESBURG Feb 8 (Reuters) &#8211; South Africa&#8217;s ruling ANC is considering starting a sovereign wealth fund from proceeds of a proposed new mining tax that could be used to intervene in the market to cap gains in the rand [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-7765","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/7765","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=7765"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/7765\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=7765"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=7765"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=7765"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}