SARB purchase of US$3 billion

[mwk]

[...] Further south, Bank of America estimated that South Africa bought roughly $3 billion this year, and that its style of "ad hoc and low profile" interventions is likely to remain so. [...] "Recent comments from policy makers suggest a cautious approach given portfolio flows dominate [balance of payments] financing," the broker wrote. "Still this remains a topical issue for South African policy, and more rather than less talk/action is likely going ahead if rand strength continues."
http://www.marketwatch.com/story/more-countries-may-seek-to-cool-currencies-2010-10-09

[partridge]

The( a partial) answer is to tax foreign bond investors - with a small withholding tax - wef next tax year