All the countries where the rand is currently stronger

Despite a tough 2024 for the rand, as of June 2024, there are still 22 countries where the rand is stronger.

The South African rand has had a less-than-ideal start to 2024, hitting over R19/$ on a couple of occasions, thanks to geopolitical events and global economic trends such as the hawkish Fed that has yet to start its cutting cycle for interest rates.

Emerging market currencies, including the rand, have historically strengthened during US interest rate cut cycles.

However, despite expectations of a US rate-cut cycle, ongoing delays have caused the domestic currency to weaken in recent sessions.

According to Annabel Bishop, chief economist at Investec, the most probable outcome for the rand is to end the year averaging between R18.17 and R19.09, but risks remain.

This week, the rand plummeted after a model developed by a state research agency showed that the ANC looks set to lose its parliamentary majority for the first time since it came to power at the end of apartheid three decades ago.

The currency fell as much as 2.1% to trade at 18.7763 per dollar, while the yield on local-currency bonds maturing in 2035 rose 3 basis points to 12.06%.

Despite this volatility, the local unit managed to strengthen this month thanks to a turn in sentiment.

The rand is one of only five emerging-market currencies to strengthen this year, but it is still at over R18/$. As of 2 June 2023, it is currently trading at R18.80/$.

The table below lists all the countries where the rand is stronger (as of 2 June 2024) and their exchange rate with the South African rand.

Interestingly, some of the countries that trade in these currencies are among the cheapest for South Africans to travel to.

Because direct currency conversion does not always indicate the general cost of living, we also compared the cost of food, drinks, and travel to what you would pay locally in some of the countries that trade in these currencies- including others.

The costs of food, drinks and travel in these eight countries were done using data from Numbeo – one of the world’s largest databases of user-contributed data regarding cities and countries worldwide.

The base cost of the various measures in South Africa are listed below for comparison purposes:

• Cappuccino (restaurant): R34.37
• Eating out at an inexpensive restaurant for one: R150.00
• 500ml Draught Beer (restaurant): R40.00
• Average taxi trip (per kilometre): R20.00

Note: These comparisons focus more on travel and touring rather than general living costs, and conversions were done on 2 June 2024.

Argentina

• Cappuccino (restaurant): R34.57
• Eating out at an inexpensive restaurant for one: R131.49
• 500ml Draught Beer (restaurant): R33.62
• Average taxi trip (per kilometre): R18.78

Colombia

• Cappuccino (restaurant): R29.65
• Eating out at an inexpensive restaurant for one: R87.38
• 500ml Draught Beer (restaurant): R24.27
• Average taxi trip (per kilometre): R33.98

Pakistan

• Cappuccino (restaurant): R30.63
• Eating out at an inexpensive restaurant for one: R33.78
• 500ml Draught Beer (restaurant): R76.42
• Average taxi trip (per kilometre): R9.12

Philippines

• Cappuccino (restaurant): R43.41
• Eating out at an inexpensive restaurant for one: R64.21
• 500ml Draught Beer (restaurant): R22.47
• Average taxi trip (per kilometre): R4.49

Nepal

• Cappuccino (restaurant): R29.54
• Eating out at an inexpensive restaurant for one: R35.29
• 500ml Draught Beer (restaurant): R46.58
• Average taxi trip (per kilometre): R17.29

Iran

• Cappuccino (restaurant): R23.69
• Eating out at an inexpensive restaurant for one: R69.31
• 500ml Draught Beer (restaurant): N/A (against the law)
• Average taxi trip (per kilometre): R5.64

Read: 8 most expensive countries for South Africans to visit right now