The rand has weakened in the past 24 hours, with the currency nearly R18 against the dollar after an independent parliamentary panel released its report on the ‘Bala Bala’ affair, which confirmed the head of state had breached the constitution and the law. Law of the land.
Independent analyst and economist Dale McKinley said investors can expect a “calm ride” for the rand in the coming weeks following recent political developments in the country.
He explained that global currency markets tend to perform strongly when there is some form of unpredictability, which is reflected in the local currency.
Stressing that the factors that supported the rand have disappeared, Mr. McKinley noted.
In this regard, he pointed out that the South African economy is facing many challenges such as rising interest rates, inflation and the slowdown of the Chinese economy.
Academic Bonke Dumisa, the same story that said the local currency faced heavy losses in the wake of the country’s political challenges, warned that this instability would continue to affect the rand globally.
Earlier, the confederation of South African companies “Business Unity South Africa” (BUSA) insisted that the confirmation of criminal charges against President Ramaphosa would be a blow to the country’s economy.
“Findings in the report on the theft of large amounts of foreign currency from the private Fala Fala farm owned by Mr. Ramaphosa risk further eroding investor confidence and further worsening the already volatile political environment,” BUSA said. A statement.
The employers’ organization also pointed out that the country needs clear guidance in the coming days to send a positive message to citizens, investors and traders.
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