South African Finance Minister Pravin Gordhan said the rand is undervalued and joined central bank Governor Gill Marcus in calling on the U.S. Federal Reserve to take account of the impact its decisions are having on emerging markets.
The Fed’s failure last week to acknowledge the volatility in emerging markets was “regrettable,” Gordhan said in an interview today at a conference hosted by Bloomberg LP in Johannesburg. Marcus said in a separate interview that it’s in the Fed’s interest to ensure less turbulence in developing nations.
