South Africa’s central bank will consider intervening in foreign exchange markets to ensure “orderly market conditions”, it said on Monday, after the rand slumped over 3 percent to an all-time low on concerns over China’s economy.
“In the event of developments that threaten the orderly functioning of markets or that may have financial stability implications, the SARB may consider becoming involved in foreign exchange markets to ensure orderly market conditions,” the South African Reserve Bank said in a statement.
The South African rand has continued to weaken against the greenback after U.S released May non-farm payrolls figures last Friday.
The South African currency edged past its 14-year low early Monday after recording a 13.33 rand to the dollar, the first record since December 2001.
