Warning to all motorists in South Africa, and big changes for interest rates on the cards
The rand continued to gain momentum in a volatile session on Friday. It was trading at 16.0650 against the dollar, marking an increase of approximately 1.5% from Thursday’s close and about 0.9% stronger compared to the morning levels.
While most emerging market currencies remained largely stable against the US dollar, the rand benefited from a rise in precious metal prices, particularly gold and platinum, which are significant exports for South Africa.
Both metals appreciated by around 3% during the day. Additionally, recent central bank data indicated that South Africa’s net foreign reserves increased to $74.88 billion by the end of January, up from $71.14 billion in December.
Looking ahead to next week, investors focused on domestic matters will be anticipating the release of December’s mining and manufacturing output figures from the country’s statistics agency for insights into the performance of Africa’s most industrialised economy.
Meanwhile, the Top-40 index on the Johannesburg Stock Exchange was up by 1.3%.
As of Monday, 9 February, the rand is trading at R16.00 to the dollar, R21.78 to the pound, and R18.94 to the euro. Gold is currently valued at $5,034.43 per ounce, while oil prices have risen to $67.39 per barrel.
Scam warning: The Road Traffic Infringement Agency (RTIA) has warned that scammers are creating counterfeit websites that imitate the official Administrative Adjudication of Road Traffic Offences (Aarto) site in order to deceive motorists. In a message posted on X, the agency emphasised that the genuine Aarto website is aarto.gov.za. [MyBroadband]
New European interest rates: South Africa is interested in using new European Central Bank (ECB) repo lines, according to central bank head Lesetja Kganyago. He indicated that the country’s cycle of interest rate cuts has further to go. Kganyago noted that South Africa would benefit from these lines due to significant trade and investment with Europe. [CNBC]
Bad news for electricity users: South Africa’s energy regulator, Nersa, has confirmed that Eskom’s average tariffs will rise by 8.76% this year, an increase from the 5.36% that was initially announced over a year ago. Eskom’s new rates, stemming from a revenue reevaluation to correct Nersa’s earlier errors, will take effect on April 1 for direct customers and July 1 for municipal customers. [BusinessTech]
Naspers CEO shifts strategy: Naspers anticipates generating over R32 billion from the sale of non-core and underperforming assets in the upcoming year, as the largest tech investor on the JSE aims to strengthen and expand its current portfolio. [BusinessTech]
Vaccine production in the works: South Africa has restarted the domestic production of Foot-and-Mouth Disease (FMD) vaccines for the first time in over two decades. The government claims this initiative will enhance the country’s capacity to tackle outbreaks and recover important export markets. [Newsday]
Loading ...