Business News: The Rand Slumps, Weakest Level in 2 Months Amid Protests

Business News: The Rand Slumps, Weakest Level in 2 Months Amid Protests

  • As violent protest continue in Gauteng and KwaZulu-Natal the South African rand also took a hit against the dollar
  • Reports state that the rand has dropped by 1.4% which is the lowest level since 30 April, two months ago
  • The country's unemployment rate is currently 32.6% and could become worse as protests continue

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The rand fell to its lowest level versus the dollar in more than two months, as violent protests continue in parts of South Africa following the arrest of former President Jacob Zuma last week.

In the country's two wealthiest regions, Gauteng and KwaZulu-Natal, violent protests shut down businesses and disrupted transportation networks, according to Business Tech.

rand, dollar, violent protests, gauteng, kwazulu-natal, weakest level
South Africa's rand is currently trading at R14.47 against the dollar, which is its weakest level in two months. Image: Phill Magkoe/AFP
Source: Getty Images

The rand fell by 1.4% against the dollar since 30 April, and it's currently trading at R14.47 to the dollar.

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Analyst at Rand Merchant Bank in Johannesburg Siobhan Redford says that the South African governmnet needs to take action to stop the current violent protests that have swept over the Gauteng and KwaZulu-Natal pronvince, reports Fin24.

Redfordd added that it is currently unclear whether the violent protests, looting and destrcution of property has a bigger effect on the country's economy more than the coronavirus pandemic.

Vital trade routes have also been affected by the violent protests which has an a negative impact on the economy.

The violent protests are compounded by the extension of lockdown Adjusted Level 4 which has seen business struggle to stay afloat and has robbed millions of people of their income in a country with a 32.6% unemployment rate.

SANDF deploys 2 500 soldiers to Gauteng and KZN to curb violent protests

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Briefly News recently reported that President Cyril Ramaphosa approved the deployment of 2 500 members of the South African National Defence Force in hopes of curbing the violent riots and looting spread across the country.

Defence and Military Veterans Minister Nosiviwe Noluthando Mapisa-Nwakula stated that the SANDF members who were deployed will collaborate with the SAPS to prevent and combat crime in order to maintain and preserve law and order in SA.

'Operation Prosper' is what the above will be known as and started from 12 July. It will continue on until 12 October 2021. The Minister stated that the rest of SA's security cluster ministers are expected to give briefings regarding the operation as soon as possible.

According to BusinessTech, Ramaphosa stated that a total of 166 suspects were arrested in KwaZulu-Natal while 323 suspects were taken into custody in Gauteng. The arrests did not mean that the violence would stop as it threatens to spill over into other provinces.

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Source: Briefly News

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