All other things being equal, a significant depreciation of the South African rand (ZAR) against the US dollar (USD) in a floating exchange rate system would be expected to lead to
an improvement in South Africa's terms of trade.
a decrease in the domestic currency price of imported intermediate goods.
an increase in domestic inflationary pressures from both demand-pull and cost-push sources.
a decrease in aggregate demand due to a contraction in net exports.
