Government is trading FX with your tax money

No jokes, the Deputy Finance Minister said this morning that the government has spent R50 billion in the past 12 months to purchase foreign currencies (mainly USD we fear).  Apparently it did this to ’stabilise the volatile Rand exchange rate.’   Whatever the reason, that’s roughly R10,000 for every registered personal income tax payer.  The government is buying – on your behalf and with your money – a piece of paper that is backed by the faith and credibility of the US government, which is backed by US government debt, which is backed by a down-and-out US taxpayer.  That money could’ve gone a long way to repair a broken water and electricity infrastructure, or even paid a few million water and electricity bills. Instead, it’s supporting foreign governments by propping their currencies up.