CPI stats sa

Photo: Pixabay

Dollar to rand value: SA currency slumps to a new ‘all-time low’

It’s like landing a knockout blow on a boxer down on the canvas. The rand value – and exchange rate with the US dollar – has been pummeled by coronavirus.

CPI stats sa

Photo: Pixabay

The rand recorded its worst-ever close against the US dollar on Wednesday evening as the true extent of the coronavirus crisis grabbed our economy by the banknotes. The record-low against the greenback — surpassing the R16.87 closing level of 18 January 2016 — also coincided with awful performances against the pound and the euro.

Exchange rate latest: US dollar to rand value for Thursday 19 March

The market opened at some tragic levels on Thursday. The rand slumped even further against the US currency, and opened the morning on an eye-watering R17.50 to the dollar. For context, it was around R8/$ during the 2010 World Cup. Six months ago, the value hovered between the R13 to R14 mark. But that was BC – “before coronavirus”.

We’re not really sure you can call it a “fightback”, but the rand has made a few minimal gains this morning. As of 12:00, it had strengthened slightly to R17.31. There’s definitely nothing to write home about, though. 

The rand’s ‘worst performance’

The lowest-known level ZAR has reached against the dollar – not just at the close of business, but at any given time – was the intraday weakest level R17.91. South Africa came perilously close to breaching this level overnight

Mzansi’s financial performance – in terms of global exchange rates – has been in the mud for a while now. Hectic bouts of load shedding and stagnant growth projections have put the brakes on our economic development. The impact of the coronavirus has the potential to decimate a discal structure that was already preparing to throw in the towel.

ZAR value plummets

Before COVID-19 engulfed most of the world, SA was on course for a credit ratings downgrade from Moody’s. The potential to slip into junk status – while we’re mid-recession – would compound the horrendous situation we’ve already found ourselves in. One has to hope that, from this point, the only possible way to go is up…