The South African Rand traded at almost R21.22 to the British pound today (Monday), its worst level ever. The U.S. dollar is R13.94, meanwhile, slightly up on it worst-ever level of R14.07 on August 24.
SA People News said today that the news comes two days before Rand Merchant Bank and the Bureau for Economic Research are to release their business confidence index that is based on business executives’ opinions. According to a report in Business Day on Monday, the index has been hovering below the neutral 50 mark for the last five years, and its decline has been quicker of late.
On Thursday, mining and manufacturing data is to be released, also impacting economic indicators.
In his review of the latest currency meltdown, economist Cees Bruggeman’s said, “At least the weak rand at $13.87 and €15.44 [is] shielding our exports and local output while discouraging imports, eroding the current account deficit. I knew there had to be a silver lining somewhere in all this dreadful reality.”
