South African Rand at Near 3-Year High

2025-12-05 13:11 By Luisa Carvalho 1 min. read

The South African rand has strengthened in recent days, trading around 16.9 per USD, a new milestone since January 2023, on the back of positive domestic developments.

The country’s first dollar-denominated eurobond issuance since 2024, valued at $3.5 billion, drew nearly four times the amount offered, highlighting South Africa’s rising attractiveness to global investors.

Strong demand reflects confidence in the government’s fiscal discipline, reform progress, and improved growth outlook, reinforced by the adoption of a lower inflation target and robust revenue performance.

Notwithstanding these positive signals, risks tied to coalition government instability and tariff-related uncertainty remain key headwinds.

On the monetary policy front, the South African Reserve Bank (SARB) resumed policy easing by cutting its key repo rate to 6.75% on November 21.

Rate cuts are expected through 2026, with inflation anticipated to peak early next year and move toward the 3% target.



News Stream
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