Rob Glenn Economics Reports 3/13/14South Africa is the most powerful and successful economy on the African continent. But this economic powerhouse is in trouble and showing signs of difficulty. (World Book) Their economy has been in decline for the past four years. This is demonstrated through the study of their macroeconomics and their exchange rate, as well as inflation. First of all, the country of South Africa has a floating exchange rate. This means that the value of their money is determined by the laws of supply and demand. The South African Rand is not very successful on the open market. For example, the exchange rate between other global economic superpowers such as New Zealand, Australia, the British Pound, the Euro and the United States Dollar varies between 9.2 and 17.9 South African Rand against the currency of the other countries. (exchangerates.org) This shows that the value of the Rand is not worth much on the world market compared to other countries' currencies and has reached its lowest value in the last five years. In January 2014 South Africa's inflation rate was around 5.9%. (tradingeconomies.com) The average inflation rate for South Africa was approximately 9.47% between the years 1968-2014. (Tradingeconomies.com) The average inflation rate for the previous year was around 5.40, and the highest inflation rate ever experienced by the South African market was 20.90, but on the other hand they experienced a rate extremely low inflation rate of around 0.20 during a period of economic growth in South Africa. (tradingeconomies.com) The expected inflation rate for the rest of the year is expected to be around 5.54%. (Tradingeconomies.com) The South African economy averages a price increase of 0.7% on a monthly basis... half of the document...itage.org) South Africa's once booming economy is in decline as their markets struggle to take their place in the world while their economy continues to emerge. (World Book) The main macroeconomic problem that South Africa suffers from the most is the difficulty in providing jobs for many of its citizens in its country. They also suffer from a bad exchange rate on the open market and continue to struggle to reduce the inflation rate. www.leader.co.za/printarticle.aspx?s=1+f=1+a=2893. Retrieved from www.leader.co.caReuters. (2014, March 12). “South Africa's economy slows,” company report. Retrieved form www.iol.co.za.www.exchangerates.orgwww.tradingeconomies.com/southafricawww.Heratige.org/index/country/southafricawww.economist.com