Firewall for stopping dodgy tenders in South Africa, and the rand should be trading below R10 to the dollar
The rand firmed on Tuesday, following other emerging market currencies, despite Reserve Bank data showing that business conditions had declined for a third month in a row.
The rand traded at 15.96 to the dollar, roughly 0.4% stronger than its previous close, supported by continued dollar weakness and higher commodity prices.
The South African Reserve Bank (SARB) said on Tuesday that its composite leading business cycle indicator fell 1.4% month-on-month in June.
This indicator collects data on several factors, including vehicle sales, business factors, and money supplies, to gauge the economic outlook of South Africa.
The dollar index changed very little against a basket of currencies but remains vulnerable as investors await news about U.S. sanctions against Iran.
U.S. Treasury Secretary Scott Bessent on Monday unveiled an expansion of sanctions against Iran and warned countries to cut business ties with Iran or risk being forced out of the dollar-based financial system.
Domestically, investors will be awaiting producer inflation data and budget balance figures, for further insight into the South African economy.
South Africa’s benchmark 2035 government bond strengthened, with the yield falling 8 basis points to 8.455%.
On Wednesday, 26 August, 2026, the rand was trading at R15.93 to the dollar, R21.72 to the pound, and R18.58 to the euro. Gold is trading at $4,642.1 an ounce, while oil prices were at $86.62 a barrel. [Reuters]
5 important things
Firewall for stopping dodgy tenders in South Africa: The Organisation Undoing Tax Abuse has demonstrated an open-source platform that can proactively monitor tenders for irregularities, pre-empting corruption and waste in government deals. [MyBroadband]
The rand should be trading below R10.00 to the US dollar: Efficient Group chief economist Dawie Roodt said that the South African rand should be trading below R10.00 to the US dollar. [Newsday]
A good company should never pay a dividend: A good company should never pay a dividend, as it tells shareholders that they can do better things with the money than the management team. [DailyInvestor]
SARB business cycle indicator falls for third straight month — this is why: South Africa’s business index fell after a decrease in the export commodity price index and a slower growth of money supply. [BusinessDay]
R2,500 pain for teachers in South Africa: South African public school teachers have seen their salaries increase significantly since 2019, but the increases have failed to keep pace with inflation, leaving many worse off in real terms. [BusinessTech]
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