rand value interest rate


Why is the rand to dollar exchange at its best rate in three years?

Our currency is now trading at less than R1 : $12, and there’s a few explanations why…

rand value interest rate


The rand is gaining some serious ground on the US dollar in 2018, but what is good news for South Africa isn’t so rosy for the Americans. The current rand to dollar exchange is the best it has been for three years in Mzansi.

So, how have we ended up here? It wasn’t that long ago that a cautious mid-term term budget speech from Malusi Gigaba had the rand pushing R1 : $15. When markets closed on Tuesday, the rand was trading at R11.89 per dollar. Here’s what has tipped the scales in South Africa’s favour.

Why the rand to dollar exchange is below $12:

Jacob Zuma’s future

Like anyone with more than three brain cells could have predicted, Zuma’s exit is contributing to a renewed confidence in South Africa. As he loses power and influence, there seems to be more faith that SA can function without high-level corruption.

Cyril Ramaphosa’s productive first month as ANC President

We’ve heard it all before from the ANC: “We can change, we’re not like that any more”. But corruption has plagued the party for the last decade. However, Cyril is already putting the squeeze on state captors, the NPA, and even his party comrades, who are happy to back him and snub Zuma.

World Economic Forum

With Ramaphosa and a South African delegation currently ‘selling South Africa to the world’ at the WEF in Davos, our rand report from 1st Contact forecasts that this will positively impact on the exchange rate.

Goldman Sachs

It’s nice to have friends in high places. The world’s third largest investment bank said that South Africa are ‘the emerging market story of 2018’ at the start of this week. Another indicator that SA is on the right track.

Government Shutdown

As Republicans and Democrats clashed over the Senate’s budget, the US government endured a brief shutdown this week. With the country stalling to come to an agreement – and Donald Trump’s anti-globalism approach taking a negative effect – the dollar has been noticeably weakened.

Global equity

Stock trading, both public and private, has been on an upward trajectory since December. This has helped the rand to dollar exchange significantly, and enabled it to break the $12 barrier.