Die verband tussen die randwisselkoers en die rentekoers onder die swewende wisselkoersstelsel

M.Com. (Economics)The objective of the thesis was to examine the relationship between the rand exchange rate and the interest rate under the floating exchange rate system. A theoretical analysis of previous exchange rate regimes with a particular emphasis on the floating exchange rate system was conducted. At the end of the sixties it became evident that the limitations of the fixed exchange rate system were such that it could no longer handle the tensions which had developed in the international monetary system with its great dependence on the US dollar as reserve currency and unit of accounting. The floating exchange rate system deregulates the international monetary system. Market forces are allowed to play a more prominent role in determining a price variable such as the exchange rate. This flexibility has led to the globalization and internationalization of the world's fund markets