End of an era for Woolworths chocolate maker, and Ramaphosa suspends top official
The rand weakened in early trading on Thursday amid a standoff between Iran and the US in the Middle East conflict, along with a lack of progress in peace talks.
These factors pushed oil prices back above $100 per barrel, impacting investor sentiment.
The rand was trading at 16.53 against the dollar, approximately 0.4% weaker than its previous closing value.
Meanwhile, the dollar remained mostly stable against a basket of currencies, while oil prices increased by more than $1.
As South Africa is a net importer of energy, it is particularly vulnerable to fluctuations in global prices.
On Wednesday, Iran seized two ships in the Strait of Hormuz, tightening its control over this crucial waterway after US President Donald Trump extended a ceasefire with no indications of renewed peace talks.
Trump also upheld the US Navy’s blockade on Iran’s maritime trade.
Iran’s parliament speaker and chief negotiator, Mohammad Baqer Qalibaf, stated that a full ceasefire would only be meaningful if it were lifted.
In addition, South Africa’s benchmark 2035 government bond weakened in early deals, with the yield rising by 6 basis points to 8.615%.
As of Friday, 24 April, the rand is trading at R16.65 to the dollar, R22.41 to the pound, and R19.44 to the euro. Gold is currently valued at $4,678.4 per ounce, while oil prices have risen to $105.6 per barrel.
5 important things happening in South Africa today
End of an era for Woolworths chocolatier: South Africa’s largest independent chocolate maker, Beyers Chocolate, has entered liquidation after a supply exclusivity dispute ended its 34-year partnership with Woolworths. [Financial Mail]
Ramaphosa suspends top official: President Cyril Ramaphosa has suspended National Police Commissioner Fannie Masemola and appointed Puleng Dimpane, SAPS Divisional Commissioner for Financial Services, as Acting National Police Commissioner. [TimesLive]
New rules for gold and crypto: New draft regulations may require South African residents to sell gold, foreign currency, or crypto assets to the National Treasury if they exceed a threshold set by the Finance Minister. [DailyInvestor]
US wants more South Africans: The United States may raise its annual refugee quota from a historic low of 7,500, according to a State Department official. [ENCA]
New project with Amazon and World Bank: The World Bank has partnered with Amazon.com on a bond to fund ecosystem rehabilitation in South Africa’s Eastern Cape Province. [MyBroadband]
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