SA rand under pressure

Weaker global growth, market volatility and the political climate are the biggest issues affecting the rand, according to a Bloomberg poll.

BEITBRIDGE MONEY CHANGER ROBBED OFF R60 000

The survey, released yesterday, captured the opinions of more than 160 local bankers, CEOs, CFOs corporate treasurers, and foreign exchange and hedge fund executives at a Bloomberg event two weeks ago. At the time, Reserve Bank deputy governor Daniel Mminele warned that the rand and other emerging-market currencies would remain volatile, adding complexities to monetary policy.

Mminele cited the continued tightening in global financial conditions, a change in investor sentiment towards emerging markets, escalating trade conflicts and geopolitical developments as key risks to the rand. According to the poll, more than one-third (37 percent) of those who responded cited global economic growth and market volatility while a third (31 percent said it was SA’s foreign investment. A few (21 percent) said US monetary policy would affect the rand, while 11 percent cited trade friction and tariffs.

On the local front, more than half the participants said SA’s political environment would affect the rand, while 22 percent thought the trajectory of interest rates would affect the currency. An improvement in the country’s political environment could help the rand strengthen significantly, said Old Mutual Investment Group’s head of economic research, Johann Els. The poll found that 17 percent think SA’s persistently high unemployment rate will affect the rand while 7 percent cited the battered mining industry. — BusinessLive.

YOU MIGHT ALSO LIKE…

THINGS YOU DIDN’T KNOW ABOUT CHIGUMBA

Justice Priscilla Chigumba has been on the news lately, from being mocked by many praised too.here are a few things you might have not known about Chigumba.

MDC DEMANDS MISDIRECTED : ZEC

Justice Priscilla Chigumba is a judge of the High Court of Zimbabwe and the Chairperson of the Zimbabwe Electoral Commission (ZEC). Justice Chigumba succeded Ju….more here

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.