South Africa - Who's dropping the carry trade?

Foreign Exchange

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The so-called Bric trade - taking exposure to Brazil, Russia, India and China - has been the staple of emerging market traders over the past few years. However, African currencies, and the South African rand in particular, have also presented mouth-watering opportunities for offshore investors.

One of the most popular strategies has been the carry trade. The concept is pretty simple: investors borrow in the currency of a country with low interest rates, such as Japan, and invest or lend in a

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