SA Rand On A Freefall Against The US Dollar

The Reserve Bank of South Africa recently announced the introduction of printing new bank notes citing it was in line with international standards. However, economic statutes highlight that printing new money causes inflation to soar and this is what is now taking place. Moreso, media reports have unearthed South Africa's role in the Russia/Ukraine war. Allegations are that SA sold ammunition to the Federation of Russian which might frost its relations with the West. S.A. fall under Bricks which is for developing countries and is obligated to be an ally of Russia: the relationship dates back to the role played by Russia to the independence of S.A. Media reports also say the United States of America (U.S.A.) might impose sanctions on South Africa if the allegations are proved to be true. The assertions were made by the U.S.A. ambassador to South Africa, Reuben Bridgety. Pretoria denied the allegations and an inquiry into the matter was set to be led by a retired judge.

South Africa might face the same fate as Zimbabwe if the U.S goes ahead with its sanctions claim. Zimbabwe, South African northern neighbour has been under sanctions for more than a double decade due to the chaotic land redistribution program and political disputes with the opposition parties. Zimbabwe's economy is in the ICU based on flooding the market with too much money under the instructions of the Reserve Bank of Zimbabwe (RBZ).