Browsing: South African Rand

Zambia is Africa’s largest copper producer, which is one of the reasons it has one of the strongest currencies on the continent. The country possesses abundant natural resources, and because copper is the most prevalent metal, copper mining is carried out on a massive scale. This provides Zambia with a significant rise in foreign currency earnings from the sale of metals to other countries.

Bscholarly notes that the value of a currency is significant because it determines the economic performance of a country. This has a direct impact on a currency’s demand on the global market. Exchange rates compare one currency to another and provide an overview of a currency’s strength in the global marketplace. According to financial analysts, factors like interest rates, economic policies, and stability determine the strength of any currency.

Mining liberalization, a debt restructuring programme following default on debt repayments in 2020, and high commodity prices …

The South African rand got firmer against the dollar on Thursday, as it has recovered from its record fall the previous session, according to information from Reuters.

Earlier today at 0630GMT, the rand traded at 18.110 per dollar, 0.6 per cent firmer than its previous close. Hence, Reuters reported that investor confidence remained fragile as concerns over the economy linger.

The second-largest economy in Africa, which went into another recession in two years, is hurting from various economic scenarios including the ripple effect of the novel coronavirus (COVID-19), and the current power crisis.

South Africa has imposed some of the toughest restrictions on the continent to try to contain the pandemic that has already taken more than 170 lives and infected over 5,500 people. COVID-19 has killed 5 people in South Africa, infected more than 1,300 others.

The Southern African nation has rolled out various measures including deploying the army …

South Africa’s Finance Minister Tito Mboweni budget speech brought strength to the nation’s currency, rand—after proposing cuts to the controversial public sector wage bill, on February 26.

According to information from Reuters, financial markets seemed to appreciate the move, which posed a threat to South Africa’s public finances.

At 0650 GMT, the South African rand traded at 15.2550 versus the dollar, which is 0.4 per cent stronger than its previous close.

According to a South African financial publication, Moneyweb, Minister Mboweni expects the public sector wage bill to reduce by $2.4 billion in 2020/21, $3.5 billion in 2021/22, and $4.4 billion in 2022/23.

Further, In the 2020 budget review policy document, National Treasury said the medium-term reductions in the wage bill will target public servants in the national and provincial departments and state-owned enterprises (SOEs) that delight unfettered access to taxpayer-funded government bailouts.

On the meanwhile, the scenario has been …