South African Rand Firms

2025-11-25 11:52 By Luisa Carvalho 1 min. read

The South African rand inched up around 17.3 per USD, amid improving domestic economic fundamentals.

The South African Reserve Bank cut its benchmark rate by 25 bps to 6.75% on November 21 and trimmed inflation forecasts for the next two years, after the National Treasury adopted a 3% inflation target, replacing the 3%-6% range used for 25 years.

Additionally, the mid-term budget update signaled stronger revenue, lower borrowing and restrained spending to bring government debt under control.

The combination of a lower inflation target, a stronger fiscal outlook, and planned infrastructure investment is expected to support long-term economic growth, after years of nearly stagnation.

While the coalition government’s stability has helped bolster confidence, tensions remain as the ANC and DA clash over contentious laws.

The upcoming 2026 municipal elections will test the ruling alliance’s cohesion as members compete for local council control.



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