The rand not doing as badly as you may think
The rand has been struggling to strengthen against the dollar – find out why.
Local citizens have been saying that the rand is doing badly on the markets against the American dollar, while the dollar has been stronger lately.
On Friday morning, 13 October, the rand was trading at R13,36 against the dollar. The rand has been losing its strength due to the dollar’s dominance in the markets. André Botha, from TreasuryOne (a premier treasury services company), said the reason for the rand’s decrease is unknown.
“The basic explanation could be that the South African market is usually the guinea pig in the emerging currency market – the rand overshadows its strength against emerging market peers because of the ease of access to its market,” said Botha.
Though the rand pick up slightly on Thursday, 12 October, the Treasury said Finance Minister, Malusi Gigaba would use meetings during the International Monetary Fund and World Bank annual conference in Washington, to convince investors and ratings firms that the economy was improving.
“If the mining data and manufacturing numbers of South Africa are restrained, there could be an effect on the GDP (gross domestic product),” said Botha.
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