Ja, but Simon, there does have to get to a point, way before the 1% scenario, where the risk associated with rand depreciation has to outway the gain in interest rates in SA. So the trick is to reduce interest rates until the point where that risk adjustment kicks in, and the rand levels off. Right now, it seems like a safe bet. Take your dollar demoninated loan (at 0.25%) pump it into a retail bond. You interest rate differential is around 7%. So you score the interest rate as well as a pretty decent chance that the rand will hit 6 to the dollar. At current levels, it can depreciate to 7.1 and you would still be in the money. However, at 6.5 to the dollar, a 7% depreciation puts you well within the rand's trading range, which then makes your carry trade more of a currency play, and there are far better currencies in the world for trading purposes. An interest rate drop should reduce the rand's slide temporarily, IMO, but once a new trading range is established, risk adjusted return calculations will be modified and we will continue down, but the range will tighten