What would happen if the Western Cape dropped the rand and used its own currency

Jamie McKane

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What would happen if the Western Cape dropped the rand and used its own currency

A study conducted by IG Group in collaboration with the London School of Economics has considered the potential implications of the Western Cape dropping the South African rand.

If the Western Cape were to create its own currency - called the Cape Rand - and break away from South Africa's national currency, it would be able to improve existing economic advantages, according to the study.
 

Mike Hoxbig

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How would taxation work? Would they create their own treasury? This would effectively be the start of a breakaway from SA.

If taxes end up in the national treasury then it's a pointless exercise anyway...
 

konfab

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That is a stupid article. The only way the Western Cape can break off of the sinking mothership is to basically declare civil war, which would obliterate any economic gains in the short term. It would however have one benefit and that would be to decrease inequality.
 

Knyro

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This must be how Americans feel about those Texas secession looks.

The Western Cape isn't going anywhere, but you lot are more than welcome to fsck off.

Umadbro?
 

xrapidx

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How would taxation work? Would they create their own treasury? This would effectively be the start of a breakaway from SA.

If taxes end up in the national treasury then it's a pointless exercise anyway...
The DA would love that, they'd be able to tax everything from water to the air we breathe.
 

Fulcrum29

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Sounds like the Cape Party rhetoric. On this note, don’t know what is happening in their politics, but they have people all out marketing their party, again.
 

Lupus

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This must be how Americans feel about those Texas secession looks.

The Western Cape isn't going anywhere, but you lot are more than welcome to fsck off.

Umadbro?
Texas was separated from the US till 1845.
Also Cape Town doesn't bring enough in to separate.
 

Knyro

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Texas was separated from the US till 1845.
Also Cape Town doesn't bring enough in to separate.
So what? There are lots of states that joined even later, but Texans are the most loud-mouthed about leaving.
 

Milano

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Bizarre. Which countries have two official currencies with neither of those two currencies being a foreign currency?

Article needs a link to the actual original study.
 
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