A currency researcher says that President Jacob Zuma as overseen the worst performance of the rand out of all prior leaders in the country.
Dwaine van Vuuren, head of research and product development at Sharenet, told Talk 702 that under his watch, the local currency has weakened 71% against the dollar.
Sharenet’s research said that president Zuma has only had to contend with 6% of his term under recession, adding that the rand could weaken far more before the president’s second term comes to an end in 2019.
In the afternoon session on Thursday, the rand traded at R14.23 against the greenback.
“Under the current administration, the rand exchange rate has risen 8.6% per annum compound. Using this as a projection, we can forecast R18.50 to the dollar by the time this second presidential term expires,” Sharenet said.
Van Vuuren said that R20 to the dollar is quite within site. “The commodities boom is over. Hot money is flowing out,” he said.
Analysts expect the rand to push through R15 against the dollar before the end of the week amid a flurry of US data, expected on Friday, including jobs data and a decision on interest rates.
Using the rand’s performance against the buck since 2010, Cees Bruggemans, consultant economist at Bruggemans & Associates, said in a note in August that by mid-2018, the rand could be at R22.50 to the dollar.