Mon. May 20th, 2019

Value of the Rand: How the election results have affected SA’s currency

value of the rand exchange rateThe ANC may have lost a few voters from 2014, but they are heading for a majority in Parliament and it’s been positive news for the value of the Rand.

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It’s not often we get to use the terms “ZAR” and “holding steady” in the same sentence when such a politically significant event happens in South Africa. Yet here we are, lauding the steadfastness of our currency. The value of the Rand has stayed strong, in the face of relative uncertainty over the past 24 hours.

International markets and domestic observers have kept a hawkish eye on the rand this week. But as it goes, there hasn’t been a great deal to report. We’ve had a look at how its measured up to Pound Sterling, the US Dollar and the Euro, and the news is pretty good for Mzansi.

Election results – value of the Rand on Thursday:

Rand vs the Pound, Thursday 9 May:

The Pound-to-Rand graph hasn’t been stressed too much, but there were some moments of note: When the early vote forecasts were received after 6:00, they showed the ANC winning the national vote by a comfortable margin.

The Economist has suggested that Mzansi will prosper if the ANC wins by a large majority. The publication identified 60% as a fail-safe, but a few dips below the 55% mark over the past 24 hours threatened to spook international markets. However, with polls now suggesting the ruling party will get 57 – 58%, things calmed by the evening:

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Pound to Rand value on Thursday 9 May – Photo: Google Finance

Rand vs the US Dollar, Thursday 9 May

There was less melodrama with the markets stateside, which failed to fluctuate by more than one cent throughout Thursday. Again, the rand peaked earlier this morning and finished the day strong against its American counterpart.

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Photo: Google Finance

Rand vs the Euro, Thursday 9 May

This was perhaps the steadiest of all performances, bar a mid-afternoon slump. Even then, the damage was minimal. Like it did with the Pound and the Euro, the value of the Rand stabilised by the close of business at 17:00:

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Photo: Google Finance

Current exchange rate and value of the Rand

  • Rand to Pound: R18.66 / £1
  • Rand to Dollar: R14.33 / $1
  • Rand to Euro: R16.08 / €1

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