(Bloomberg) -- South African central bank Governor Tito Mboweni suggested the rand is overvalued and said that it may pose a ``bit of a problem'' for the country's burgeoning current account deficit.
``The exchange rate of any country should be a reflection of the macroeconomic fundamentals,'' Mboweni said in an address to businessmen in Johannesburg today. ``If the current account goes into a huge deficit, and one continually notices that the trade balance is out of kilter, then it says something about the exchange rate being out of balance. Maybe it's a bit out of kilter, maybe there needs to be some rebalancing.''
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