![Rising-inflation-and-aggressive-interest-rate-hikes-in-the-US-also-weakened-the-rand-which-touched-R18-40-to-the-US-dollar-in-October-but-the-Phala-Phala-sent-the-currency-into-tailspin-later-in-the-year-File-phot.jpeg](https://files.peakd.com/file/peakd-hive/cryptoandcoffee/23vsNg7mmTCdf8QTcJu2kZ4cTJCxP7fWmHDMTCMB2tEC962wyaRcdwnEKx2BqmL4wX3LV.jpeg)

[source](https://www.iol.co.za/business-report/economy/sa-economy-could-be-faced-with-a-tougher-2023-d9612a96-679f-4cbc-a298-39dd95f7f0c2)

**Whatever way you look at your value as a South African you are worth 26% less than this time last year. Couldn't believe off shore investments stating your money has appreciated as it is now worth more, but who is going to be stupid enough to bring money back here?**






Governments are meant to help and improve the economy by making decisions on what is best for it's country yet here we are in South Africa questioning every decision as it is ludicrous. Things are so stupid you wonder if it is being done on purpose by sabotaging the economy as you couldn't do a worse job even if you tried.

The Rand tanked to R19.86 to the US Dollar yesterday evening hitting an all time low. The talk of having Putin in attendance at the BRICS conference is only fueling the uncertainty for the future relationships it has with the West. The government has been talking about giving Putin and everyone else who attends Diplomatic Immunity and will not arrest ignoring the warrant issued by the International Criminal Court for the invasion of Ukraine.

The problem is South Africa is a full member of the United Nations and has to abide by the laws. This Diplomatic Immunity will not wash and why suddenly they are backtracking and discussing holding the BRICS meeting in China. They thought they could get clever, but all they have done is shown their hand and are no friend of the West. The majority of South Africa could have told you that as this is nothing new as they are allies with Russia and China.

Economists are discussing the potential fallout if the BRICS summit going 
ahead in Cape Town with Putin in attendance. The consequences would be severe and the government seems to have no clue how bad. The AGOA agreement between the US and Southern African States would be terminated for SA as that is due for renewal in 2025 with negotiations meant to be happening this year. Sanctions from the West is not to be dismissed either as this is really showing who they are looking out for.

The international relations is important for trade and all they have done is made themselves outcasts. Who would want to invest in a country that is on a  course of self destruction? The people have had enough of the nonsense that ahs been happening internally as the country is suffering from a lack of leadership.

One just has to look at a 0% growth forecast for this year which is closely tied due to a lack of electricity. Nothing is being done about this as it suits the government to keep it as it is as they are the ones stealing from the state controlled power utility. They are so corrupt they do not care the damage they are causing as they are printing money through their actions even though it is costing the country billions of dollars in lost revenue each day.

This is what happens when you have uneducated people in charge because they think they are above the law as the law is as corrupt as they are. The forecast for the Rand over the next two years is not looking great as it is on a downward spiral. I would not be surprised to see R25 to the USD within the next 12 months or maybe sooner.

A weaker Rand ultimately means a lower living standard for the population as inflation pushes the prices up due to increased costs thus making the purchase power of the population much less. Foreign investment dries up as the returns shrink. All of this means less employment opportunities and a bleak future.

The SA Government seems hell bent on the new BRICS currency yet they will have very few trade partners left to trade with. The US and Europe account for the bulk of the GDP so who is going to buy SA goods once they have gone?

The masses unfortunately will still vote in the same way as they are mostly uneducated and why the Government never wants to educate them. People talk about 2024 and voting the ANC out, but that is only wishful thinking and won't be that easy. If they are prepared to destroy the country over greed will they let go of the controls as I don't think so. Africa is known for dodgy elections and can guarantee you the ruling party will remain in power.

Posted Using [LeoFinance Alpha](https://leofinance.io/@cryptoandcoffee/south-africas-foreign-policy-hurting-the-economy)