A drop in exports pushed SA’s current account deficit to its highest level in two years, adding to a raft of negative data that have contributed to the rand’s slide. The deficit on the current account — the broadest measure of trade in goods and services — may spell further weakness for the rand, which has already lost about 10% in 2018, fuelling speculation the Reserve Bank will be unable to support a weakening economy by lowering interest rates. Rand weakness pushes up costs of imported goods such as fuel, pushing inflation higher. Exports were knocked by a stronger rand earlier in 2018, the Bank said on Thursday. The trade balance swung to a deficit of R25bn from a surplus of R74bn in the fourth quarter. The rand jumped to its strongest levels in more than three years after Cyril Ramaphosa became president in February. The gains have since been erased amid concern that a potential global trade war may dent SA’s export performance. "The latest weakness in South African exports cou...
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