Stronger rand might delay rate hike
The currency reached a 10-month high against the US Dollar yesterday.
This did not go unnoticed on social media with 'The Rand' trending on Twitter.
The size of #SouthAfrica’s economy is $301bn at the rand’s current exchange rate, while Nigeria’s GDP is $296bn (IMF). #SAisNumber1
— Clayson Monyela (@ClaysonMonyela) August 10, 2016
If Rand were a person
— Sure Kamhunga (@SureKamhunga) August 11, 2016
I would be saying good morning you lovely chap
Continue strengthening against dollar today ..
Anyway morning folks
It's currently trading at about R13.35 to the greenback.
Economist Graeme Kerner says there is no clarity on how long the rand's bullish movement will last but says it is good news considering the fears around 'Brexit' and how it would influence the South African economy.
"My sense is that this is probably going to take the pressure off the Reserve Bank in having to hike rates and I think if all goes well for inflation [then] it all goes well for the consumer as well.
"You know if you were in the market for a TV three months ago you were going to pay a whole lot less hopefully than you would have done.
"Just generally, it will take some of the pressure off what's really been a very difficult economic environment for the consumer for some time now," he said