WATCH: The factors that may boost the rand in 2019
UBS Global Wealth Management believes that the rand will strengthen in the near to medium term, with some domestic risk events having diminished, at least for now, and a more favourable external backdrop coming to bear.
PODCAST: South African consumers are going through the most.
The firm has, however, highlighted a few key risks to its positive outlook. In a note, UBS states that on the local front a poor performance by the ANC in the general election, a further deterioration in public and state-owned enterprises’ finances and negative ratings by ratings agencies are all potential stumbling blocks for the rand. While internationally, concerns about global growth and obstacles to trade could weaken the local unit.
Tilmann Kolb from UBS Global Asset Management joined Business Day TV to discuss the company’s outlook for the rand.
Tilmann Kolb from UBS Global Asset Management talks to Business Day TV about the local currency’s near- to medium-term outlook
Or listen to the full audio: