South Africa’s currency weakened by political and economic chaos

Posted on Jul 16, 2021 1:15 PMUpdated Jul 16, 2021, 1:59 PM

The South African currency had a turbulent week. It lost 2% against the dollar, despite a slight rally of 1% on Friday, to 14.44 rand per dollar. Since the start of the year, the rand has nonetheless posted an increase of 1.6% against the greenback and 4.5% against the euro.

The year 2021 had started well for the rand, which benefited from the rebound in commodity prices abundant in South Africa (iron, zinc, copper, etc.) and from the global economic recovery. But, as in 2012, it is once again suffering the repercussions of the political turmoil, social unrest and protests that shake the country. A relative return to calm took shape in the country at the end of the week. The government has reassessed the death toll at 117 since the start of protests caused by the health crisis and the recent incarceration of former President Jacob Zuma.

Leave a Reply

Your email address will not be published. Required fields are marked *