US sends another warning about South Africa, and airline halts all flights to South African airport
The rand strengthened against the dollar in Wednesday’s trading session as the country’s markets overlooked mixed domestic economic signals released by the statistics agency.
The rand was trading at 16.3150 against the dollar, approximately 0.6% stronger than Tuesday’s close, maintaining its strongest position since August 2022.
The dollar remained stable against a basket of currencies as investors awaited US President Donald Trump’s speech at Davos, following his tariff threats that prompted a broad selloff of US assets.
In December, South African inflation slightly increased, as anticipated, but analysts still expect the central bank to implement several interest rate cuts this year due to contained price pressures.
The inflation rate rose from 3.5% in November to 3.6% in December, remaining within the central bank’s tolerance band of 1 percentage point around its 3% target.
The statistics agency noted that the average inflation for 2025 is projected to be 3.2%, the lowest in 21 years.
Investec economist Annabel Bishop indicated that consumer price inflation is expected to drop to 3.0% year-on-year next month and remain below 3.0% until the fourth quarter of 2026.
She attributed this decline to lower food and energy prices, as well as a stronger local currency. On the Johannesburg Stock Exchange, the Top-40 index was last recorded at a 0.3% increase.
On Thursday, 22 January, the rand is trading at R16.27 to the dollar, R21.86 to the pound, and R19.02 to the euro. Gold is trading slightly lower at $4,795.92 per ounce, while oil is up to $65.31 a barrel.
5 important things happening in South Africa today
Trump’s warning about South Africa: US President Donald Trump warned countries about his claims of a “white genocide” in South Africa during the Davos conference, diverting attention from the country’s investment initiative. His comments came as South African ministers presented a vision for a more integrated and prosperous nation to potential investors. [Business Day]
FlySafair halts flights: Following weeks of devastating rains in Limpopo, Mpumalanga, and the northern parts of KwaZulu-Natal, FlySafair has made the call to halt its Hoedspruit flights, as other airlines return to the airfield. Disruptive rains and flooding throughout Limpopo and Mpumalanga, which have since been classified as a natural disaster, have swept away houses, cost lives, and halted operations at the Kruger National Park. [TopAuto]
Mr Price’s R10 billion headache: Benguela Global Fund Managers opposes Mr Price’s acquisition of European retailer NKD, arguing that it is overpaying for an underperforming asset. Benguela seeks the JSE to reconsider its rejection of their request for shareholder approval. [News24]
More bad news for DStv: DStv is running a promotion through which customers buying new decoders can receive significant discounts. However, the company has quietly increased its promotional prices. [MyBroadband]
Massive pay bump for Secretary to Parliament: Corruption Watch has raised concerns about the Secretary to Parliament’s salary, which increased from R2.5 million to R6.1 million in three years. The organisation’s aims are to ensure that the custodians of public resources act responsibly to advance the public’s interests. [Newsday]
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