The South African Reserve Bank has revised the trade weights used in South Africa’s effective exchange rate indices, reflecting shifts in the country’s trading relationships and competitive exposure. China now ranks as South Africa’s largest weighted trading partner at 28.6%, up from 3.1% in 1999 and sixth place in 2003, while the euro area has moved to second place as its weight declined from 35.7% to 26.01%. The revised weighting reflects an uneven bilateral relationship and China’s growing presence in export markets where South African producers compete. China supplied 35.7% of South Africa’s manufactured imports but received about 5.9% of its manufactured exports. These changes alter the basket of trading partner currencies against which the rand’s performance is measured.
South African Reserve Bank revises effective exchange rate weights, placing China first at 28.6%
The South African Reserve Bank has revised South Africa’s effective exchange rate weights, placing China first at 28.6% and the euro area second at 26.01%. China supplied 35.7% of South Africa’s manufactured imports but received about 5.9% of its manufactured exports, while its competition with South African producers in other export markets also increased its weight.