SA needs smarter trade approach

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There is a way to move around trading in the US dollar.

Political economist, Professor Patrick Bond says that this is evident in the trade patterns of Russia, China, India, and Iran.

Three of these nations belong to the BRICS bloc, of which Brazil and South Africa are also members.

But these two are being hard hit by the global economic volatility.

Even the United States has had to adapt its anti-Saudi Arabia policy due to its need for oil.

The Western-imposed sanctions on Russia, which includes its gas and oil supplies, have caused prices to skyrocket.

Bond says that the impact of the oil price in South Africa is also being felt due to it now having to import refined, instead of crude oil.

All of the country’s refineries have shut down either due to aging infrastructure, or not adhering to the air quality standards, pushing up the price of this commodity.

Bond contends that the Reserve Bank is also compounding South Africa’s problems.

He says that instead of increasing the interest rate, it should tighten the exchange controls, and enforce against illicit financial flows.


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