Exchange Rate in South Africa
South Africa - Exchange Rate
Rand tumbles on slew of worrisome news
On 16 August, the rand traded at 15.23 per USD, a 8.7% depreciation from the same day in July. The rand was also down 5.6% on a year-to-date basis and was down 4.1% over the same month of the previous year.
On 26 July, Fitch Ratings lowered South Africa’s credit rating from stable to negative due to growing strains on the public purse owing to higher spending—notably linked to increased support to heavily-indebted state-owned enterprises—and lackluster economic activity. Fitch’s move came after the government unveiled another bailout package for Eskom in Parliament three days before, amounting to an extra ZAR 26 billion this financial year and ZAR 33 billion for next financial year (USD 4.2 billion over two years). On 30 July, Eskom, the state-owned power utility provider, announced a record loss for the year through to March, although it was still smaller than was initially expected. On the same day, the country’s Statistical Institute revealed that the unemployment rate reached an over-15 year high in Q2, piling further downward pressure on the currency. Since the beginning of August, the rand has plummeted on the increasing likelihood of Moody’s downgrading the country’s credit rating to junk status after the government announced huge additional bailout funds for Eskom and signs of a deteriorating global economic environment.
Panelists participating in the LatinFocus Consensus Forecast project that the rand will end 2019 at 14.66 per USD and 2020 at 14.49 per USD.
South Africa - Exchange Rate Data
|Exchange Rate (vs USD)||10.47||11.57||15.50||13.68||12.38|
5 years of economic forecasts for more than 30 economic indicators.
South Africa Exchange Rate Chart
Source: Thomson Reuters.
South Africa Facts
|Bond Yield||8.10||0.29 %||Sep 04|
|Exchange Rate||14.81||-0.21 %||Sep 04|
|Stock Market||0.1||-0.44 %||Sep 04|
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September 18, 2019
Consumer prices rose 0.3% over the previous month in August, a slightly smaller upturn compared to the 0.4% month-on-month increase in July.
September 10, 2019
The contraction of the manufacturing sector eased in July.
September 4, 2019
In August, the IHS Markit Purchasing Managers’ Index (PMI) regained lost ground in August, climbing to 49.7 from 48.4 in July.
September 3, 2019
South Africa’s economy escaped technical recession in the second quarter, bouncing back from the first-quarter’s marked contraction, leading to gains in the rand.
August 21, 2019
Consumer prices rose 0.4% over the previous month in July, matching June’s month-on-month upturn.