Rand takes another beating in early morning trade
The Rand has been trading at R17,70 to the Dollar on Tuesday morning, continuing its slide against other major currencies.
Just two weeks ago, the Rand was trading at R16,40 to the Greenback.
Senior Economist at Econometrix, Dr Azar Jammine, says the weakening of the local currency is as a result of global factors, rather than due to domestic issues.
"Behind people's minds is the realisation that South Africa's fiscal position is very powerless and that we may be heading for a debt trap, but it's more the global factors that are playing a role in weakening the Rand than the domestic factors."
READ: KZN's COVID-19 cases fast approaching 100 000 mark
Jammine says the further impact of COVID-19 on global growth, is once again causing fear amongst investors.
"Internationally, there have been concerns that the spread of the coronavirus is not slowing down and that as a consequence countries may be forced to lockdown or restrict consumer practices and distancing yet again.
"As a consequence, global economic growth may not recover to the extent that people might have hoped for," adds Jammine.
Listen below:
