After briefly hitting a two-year low of R15.02 to the dollar, the rand recovered on Friday afternoon but remained weaker than its overnight close.The rand came under renewed pressure after EFF leader Julius Malema introduced a bill in Parliament proposing that the state become the South African Reserve Bank’s sole shareholder.The ANC resolved at a party conference in December to place the Reserve Bank under state ownership.Peregrine Treasury manager Bianca Botes said that were the state to take over the Bank, it would threaten its independence and it would not be viewed favourably by investors or ratings agencies. "The last thing that SA can afford at the moment is further panic selling or another ratings downgrade."The sharp fall in the local currency has raised the likelihood that the Reserve Bank might hike interest rates at its next meeting.If the rand worsens beyond R15/$ and continues weakening, "the Bank’s monetary policy committee could hikes rates by 25 basis points at its ...
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