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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South Africa: Medium-Term Budget Policy Statement lays bare fiscal deterioration, threatening South Africa’s debt ratings
November 11, 2019
The Medium-Term Budget Policy Statement (MTBPS) presented by Finance Minister Tito Mboweni on 30 October revealed the bleak state of South Africa’s public finances, with budget shortfalls projected to exceed over 6.0% of GDP over the next three years.
November 7, 2019
Manufacturing output fell 2.4% year-on-year in September following a revised 1.5% drop in August (previously reported: -1.8% year-on-year).
November 5, 2019
Business conditions in South Africa’s private sector worsened for the sixth month running in October, although the rate of contraction in activity eased slightly from the previous month.
October 23, 2019
Consumer prices climbed 0.3% over the previous month in September, matching the month-on-month upturn in August.
October 10, 2019
Conditions in the manufacturing sector deteriorated in August.