Reserve Bank probed over rand ‘manipulation’, and good news for FlySafair

The rand edged higher on Tuesday as markets comprehended U.S. President Donald Trump’s changing tariff stance.

The rand traded at 18.68 against the dollar in late afternoon trade, about 0.2% stronger than Monday’s close. The dollar last traded about 0.4% weaker against a basket of currencies.

The rand traded turbulently on Monday, dropping almost 2% in early trade on news that Trump would suspend funding to South Africa over land rights, but staged a recovery later to close roughly flat.

The rand is trading at R18.70 to the dollar, R23.32 to the pound and R19.40 to the euro. Oil is trading lower at $75.80 a barrel.

Here are five other news stories making waves in South Africa today:

Rand manipulation: Members of Parliament questioned the South African Reserve Bank (SARB) about the alleged manipulation of the rand by major banks and the slow transformation in senior management. They also raised issues of “racial profiling” in credit extensions. The Reserve Bank will respond to MPs’ questions in writing or at a follow-up meeting. [EWN]

Relief for FlySafair: South Africa’s domestic aviation licensing authority has given FlySafair 12 months to reduce its foreign shareholding. In the meantime, the airline said the Air Services Licensing Council (ASLC), which falls under the Department of Transport, would allow it to fly its current routes in South Africa without interruption. [News24]

Eskom CEO is not happy: Eskom Group CEO Dan Marokane is not happy about Nersa’s decision to grant the power utility a lower tariff increase than what it had requested. He said the issue is that the kind of tariffs approved are too low for Eskom to be able to invest in the upkeep of its assets. [TimesLive]

NHI D-day: The National Health Insurance (NHI) scheme could receive its first budget allocation after it has been promulgated into law in the Finance Minister’s 2025 Budget Speech on 21 February. [Daily Investor]

Untapped potential: South Africa has the mineral resources and expertise to assemble lithium-ion batteries for electric vehicles and stationary storage, potentially generating R16 billion annually in the electrical machinery industry, according to Mintek CEO Molefi Motuku at the African Mining Indaba in Cape Town. [Daily Maverick]