Twin deficits to push rand to new lows, HSBC forecasts
Global bank and financial services group forecasts a retreat to R19.50/$ by year end
20 September 2023 - 05:00
The rand is headed to a new low against the dollar as it faces a double whammy of a worsening fiscal position and a widening current account deficit, boding ill for importers and threatening to drive up prices at a time when the Reserve Bank’s victory against inflation seemed in sight.
In a note to clients this week, HSBC analysts said that while the Bank has tried to tame inflation and made the rand one of the emerging-market currencies that offer attractive real rates, this has not been enough to shield it from external shocks and internal weaknesses...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.