Ramaphosa reveals major new deal with China, and Bill Gates dumps all his Microsoft shares
South Africa’s rand weakened last week due to a stronger dollar and rising oil prices, which negatively impacted risk sentiment.
Global markets were also closely monitoring the final day of the summit between US President Donald Trump and China’s Xi Jinping.
Trump said Xi Jinping agreed that Tehran must open the Strait of Hormuz, but China gave no indication it would weigh in.
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The rand was trading at 16.6426 against the dollar, which represents a decline of about 1% from its previous close.
The US dollar strengthened against a basket of currencies and was on track for its largest weekly gain in over two months.
Global oil prices rose by more than 1% after Trump announced that China was interested in purchasing oil from the US.
“The risk-sensitive rand has weakened sharply this morning in line with the weaker emerging market and commodity currencies,” said Andre Cilliers, currency strategist at TreasuryONE, adding that rate hike and inflation fears were weighing on risk sentiment.
Like other risk-sensitive currencies, the rand often reacts to global developments. It has been particularly vulnerable to market sentiment since the onset of the US-Israeli conflict with Iran at the end of February.
“The rand closed at 16.45 yesterday, but even since the announcement of U.S. data, it has been riding on the back of commodity prices, especially platinum.”
“These all came off last night, quite quickly, coupled with the oil price moving up,” Adam Phillips, treasury specialist at Umkhulu Treasury, wrote in a note.
On Sunday, 17 May, the rand was trading at R16.69 to the dollar, R22.25 to the pound, and R19.41 to the euro. Gold is trading lower at $4,540.49 an ounce, while oil prices were at $109.3 a barrel.
5 important things happening in South Africa today
Ramaphosa’s new deal with China: President Cyril Ramaphosa said his administration was finalising an official electric vehicle programme for South Africa, and that Chinese EV makers plan to roll out charging stations across the country. [MyBroadband]
Bill Gates dumps all his Microsoft shares: The Gates Foundation Trust, established by Microsoft founder Bill Gates, has sold 100% of its Microsoft shares in the first quarter of the year. This means that the trust, with a portfolio value of $31.7 billion, has no Microsoft shares. It is truly the end of an era for the trust and for Bill Gates. [Daily Investor]
Plan to halt impeachment process: President Cyril Ramaphosa plans to interdict the Phala Phala impeachment proceedings. As Parliament initiates the process, sources suggest the interdict seeks to delay MPs until a court reviews the section 89 panel report central to the impeachment. [BusinessDay]
One car brand hasn’t sold a single car in South Africa in a year: Jaguar hasn’t sold a single new car in South Africa for over a year. Back in 2024, the luxury British carmaker announced that it would undertake a massive rebranding campaign to combat declining sales. [TopAuto]
R30 million paid to suspended officials: Tshwane Mayor Nasiphi Moya said the City of Tshwane is spending R30 million on suspended senior officials. [eNCA]
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