South Africa: South African rand depreciates after Brexit vote
July 18, 2016
In the aftermath of the Brexit vote, South Africa’s rand (ZAR) lost ground against the U.S. dollar. On 27 June, the currency traded at 15.52 per USD. The figure was 4.14% lower compared to the previous day and 26.9% weaker on an annual basis.
The rand’s value took the deepest plunge among emerging market economies as investors lost appetite for risk assets. Moreover, the country’s bleak growth outlooks, low commodity prices and fears over a possible credit downgrade are putting further pressure on the currency.
Author: Dirina Mançellari, Senior Economist