A five rand coin. Picture: REUTERS
A five rand coin. Picture: REUTERS

In this edition of Business Day Spotlight, we’re talking about the state of SA’s currency, the rand. 

Host Mudiwa Gavaza is joined by Bianca Botes, executive director at Peregrine Treasury Solutions, a foreign exchange and treasury specialist company. 

Join the conversation:  

Botes begins by explaining that the local currency has had an eventful year, reaching its weakest point in April at over R19/$. This was mainly due to global investors moving away from emerging market investment as the world went into lockdown to stop the spread of coronavirus, she says. 

Since then, Dollar weakness has helped the rand to recover and stabilise between R16 and R17 per unit of US currency.

Business Day Spotlight host Mudiwa Gavaza. Picture: DOROTHY KGOSI
Business Day Spotlight host Mudiwa Gavaza. Picture: DOROTHY KGOSI

At the time of writing, the rand was trading at R16.43/$. 

The discussion also touches on the effect of government stimulus on the rand, the SA Reserve Bank’s bond trading practices, SA’s place in the global economy, the concerns of institutional and individual investors around the rand and an outlook for the local economy. 

Botes says much of the rand’s strength is dependent on global markets and events. Looking forward, she says the result of the upcoming US presidential election will have a big effect on SA’s fortunes in currency markets. 

For more episodes, click here.

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 Business Day Spotlight is a MultimediaLIVE production.

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