Currencies depreciate and appreciate all the time.Who gains and who loses when the SA rand depreciates?
A)Europeans holding SA rands gain, European tourists to SA lose.
B)European exporters to SA gain, Europeans holding SA rands lose.
C)SA exporters gain, SA importers lose.
D)SA importers gain, SA exporters lose.

Question

Quizplus · Accepted Answer

When the SA rand depreciates, SA exporters gain because their products become cheaper for foreign buyers, making them more competitive in the global market. On the other hand, SA importers lose because they have to pay more for imported goods. Additionally, the depreciated rand may make foreign investors hesitant to invest in SA, leading to a decrease in foreign direct investment.

Currencies Depreciate and Appreciate All the Time