How to start trading with Zero Investments?; Image; The South African Media
Rand takes a hit after US accuses SA of arming Russia
The rand took a hit, losing more than 30c of its value against the dollar after the US accused South Africa of arming Russia.
How to start trading with Zero Investments?; Image; The South African Media
The rand crashed on Thursday, 11 May, losing more than 30c of its value against the dollar in minutes after the US ambassador to South Africa Reuben E. Brigety accused the country of providing weapons and ammunition to Russia.
The South African previously reported that the US alleged the arms were supplied to Russia when a sanctioned ship, Lady R, docked at the Simon’s Town naval base between 6 and 8 December 2022.
US SAYS SA UPLOADED WEAPONS IN RUSSIAN SHIP WHICH DOCKED IN CAPE TOWN LAST YEAR
“Among the things we noted was the docking of the cargo ship in the Simon’s Town naval base between 6th to 8th December 2022, which we are confident uploaded weapons and ammunition onto that vessel in Simon’s Town as it made its way back to Russia,” said Brigety.
ALSO READ: Retired judge to lead inquiry into whether SA supplied Russia with arms
RAMAPHOSA DENIES THE ACCUSATIONS
In a statement, President Ramaphosa denied the accusation,labelling them “disappointing”.
“The Ambassdor’s remarks undermine the spirit of cooperation and partnership that characterised the recent engagements between US government officials and a South African official delegation led by National Security Special Advisor to the President, Dr Sydney Mufumadi.
“It is therefore disappointing that the US Ambassador has adopted a counter-productive public posture that undermines the understanding reached on the matter and the very positive and constructive engagements between the two delegations,” said Ramaphosa.
ALSO READ: Did South Africa provide Russia with weapons? The US thinks so
LOCAL FACTORS ARE ALSO TO BLAME FOR THE WEAKNING OF THE RAND
The rand broke through the R19/$ level on Thursday for the first time since April 2020.
This could however,be also blamed on the local factors such as load shedding which has heavy impact on the country’s economy.
“The rand is in a fragile state, with local factors, in particular load shedding, weighing on the local economy and currency. Rand weakness is expected to continue in the short term,” said Bianca Botes, director at Citadel Global as quoted by News24.
