Vavi hasn't thought it through: iLIVE
Zwelinzima Vavi said at the Cosatu conference that he wants the government to take full control of the Reserve Bank so it can lower the value of the rand even further ("Change Reserve Bank", September 19).
This may help a few firms to become more competitive in the export market and create a number of jobs in that sector, but that is not the end of the story.
It will also mean we get fewer dollars, euros and pounds for our exports and, furthermore, that we will pay more rands for imports such as petrol, diesel, grain and motor vehicles.
We will all be paying more for most of our living expenses and will have to cut back on other expenditures, causing many jobs to be lost all over our economy.
In terms of purchasing-power parity, our rand is already undervalued. To debase it even further would harm workers more than the wealthy. The rise in prices will, in any case, soon affect the costs of those exporters and another devaluation of the rand would be necessitated.
It is time Vavi thought a bit further than the tip of his nose.