Russian arms torpedo the rand — can it mount a fightback?
Last week, the rand tumbled to a record low of R19.52/$ thanks to yet another own goal. This, and the prospect of further fallout from SA’s Russian romance, have raised the odds of the rand remaining weak, and of further interest rate hikes
18 May 2023 - 05:03
The rand’s blowout to a record low of R19.52/$ on the diplomatic clash with the US over alleged secret arms shipments to Russia has forcefully brought home the true depths of South Africa’s economic predicament.
Even before the rand spiked above the R19/$ level late last week, economists were worried that the currency’s weakness and high domestic inflation had increased the odds of further large interest rate hikes — extremely bad news for an economy in which growth has evaporated...
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