Exchange Rate in South Africa
South Africa - Exchange Rate
Rand rebounds in May
The South African rand (ZAR) recovered some lost ground against the U.S. dollar over the past month, chiefly thanks to recovering investor sentiment as the government gears up to reopen the economy. That said, the rand remains very low by historical standards, after a sell-off of emerging markets assets and credit rating downgrades by Moody’s and Fitch Ratings sent South Africa’s currency tumbling to an all-time low at the end of April. The South African rand ended 22 May at ZAR 17.71 per USD, marking a 7.0% appreciation over the same day in April. However, the currency was down 18.8% year-on-year and 21.0% year-to-date.
The rand gained ground in the second half of May as the easing of lockdown regulations globally boosted investor demand for emerging-market currencies. Similarly, expectations that the South African economy will largely reopen from 1 June further pushed up demand for ZAR, while a larger-than-expected rate cut by the SARB on 21 May also pushed the rand higher.
The rand is currently set to remain largely stable through year-end, although the outlook is highly uncertain. Further ahead, the rand should rebound more decisively, after the economy emerges from the Covid-19 related downturn.
FocusEconomics Consensus Forecast panelists see the ZAR ending 2020 at 17.28 per USD and 2021 at 16.08 per USD.
South Africa - Exchange Rate Data
|Exchange Rate (vs USD)||11.57||15.50||13.68||12.38||14.39|
5 years of economic forecasts for more than 30 economic indicators.
South Africa Exchange Rate Chart
Source: Thomson Reuters.
South Africa Facts
|Bond Yield||8.26||0.29 %||Dec 31|
|Exchange Rate||13.98||-0.21 %||Dec 31|
|Stock Market||0.1||-0.44 %||Jan 06|
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May 25, 2020
The South African rand (ZAR) recovered some lost ground against the U.S. dollar over the past month, chiefly thanks to recovering investor sentiment as the government gears up to reopen the economy.
May 21, 2020
On 21 May, the Monetary Policy Committee (MPC) of the South African Reserve Bank (SARB) slashed its main lending rate by 50 basis points to 3.75%.
May 6, 2020
The IHS Markit Purchasing Managers’ Index (PMI) fell from 44.5 in March to 35.1 in April, the lowest print in the survey’s history, which started in July 2011.
South Africa: Government unveils stimulus to contain the impact of Covid-19 amid a dire fiscal outlook
April 27, 2020
On 21 April, President Cyril Ramaphosa announced measures to combat the economic impact of the Covid-19 pandemic totaling ZAR 500 billion (about 10% of GDP), which aim to support businesses, retain employment and shield those most affected by the crisis.
South Africa: Rand slumps to new all-time low on rising fiscal concerns and surprise Central Bank cut
April 24, 2020
The South African rand (ZAR) sank to a new record low against the U.S. dollar in April amid faltering government action to curtail the rapid deterioration of the public accounts.