Longer-term, the rand’s fortunes rest on how soon South Africa can address structural challenges, said Mamokete Lijane.
South Africa’s rolling blackouts have been blamed by strategists as the single biggest factor weighing on the rand. So, signs that the crisis is easing bode well for the currency. Prospects for gains in the rand in the next year or so are “really firm,” and much of this optimism is down to the outlook for electricity supply, according to Mamokete Lijane, global markets strategist at Standard Bank Corporate and Investment Banking.
Electricity Minister Kgosientsho Ramokgopa said this month that available generation capacity and unplanned breakdowns are improving at utility Eskom. There’s some evidence that foreign investors are responding to the slightly better power supply. Between June 1 and August 15, non-residents were net buyers of R34.4 billion in local bonds, based on data from exchange operator JSE.
South Africa Latest News, South Africa Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
South African rand weakens after China rate cutThe South African rand slipped on Tuesday, after China's central bank surprisingly cut key policy rates to boost a sputtering economic recovery in South Africa's biggest trading partner.
Read more »
South African rand flat as business confidence index dueThe South African rand was little changed in early trade on Thursday before the release of business confidence figures later in the day.
Read more »
The South African rand edged higher than the dollarThe South African rand edged higher on Wednesday, reversing some of the losses incurred the previous day after its biggest trading partner China cut key policy rates.
Read more »
Half a century of South African ceramic art covered in online saleThe August online auction comprising 250 lots in three sessions with a dedicated South African ceramics focus, is now open for bidding.
Read more »
EDITORIAL: The puzzling resilience of the South African economyDespite the omnishambles, unemployment’s down and growth forecasts are up. What’s going on?
Read more »