PRETORIA, April 10 (Reuters) - South Africa’s central bank will stick to setting benchmark lending rates rather than intervene in the exchange markets, its deputy governor said on Monday, as the rand continued to slide following credit downgrades to “junk” by two ratings firms last week.
The rand has fallen nearly 12 percent since March 27, when President Jacob Zuma recalled Pravin Gordhan from an investor roadshow to Britain and the United States before firing him as finance minister.
“We would consider becoming involved if the orderly functioning of the foreign exchange markets is under threat, guided by financial stability considerations,” Deputy Governor of the Reserve Bank (SARB) Daniel Mminele told Reuters in emailed responses to questions.
“This does not mean that we are indifferent to any challenges posed by excessive volatility or movements in the foreign exchange market,” Mminele said. (Reporting by Mfuneko Toyana; Editing by James Macharia)