- The South African rand continues to weaken and is trading at R17,04 to the United States of America's dollar
- The rand's value decreased as international investors look to the safety of the US dollar due to fears of a global recession
- A market analyst said that the economic situation further stokes recession fears in the bloc
New feature: Check out news exactly for YOU ➡️ find “Recommended for you” block and enjoy!
JOHANNESBURG - Adding to the list of growing problems that South Africans face, the rand continues to weaken and is trading at R17,04 to the dollar. The dollar strengthens to be at par with the euro for the first time in 20 years.
The rand and other emerging currencies’ value have decreased as international investors look to the safety of the US dollar due to fears of a global recession. According to SABC News, the British pound has recently weakened due to the country’s leadership change.
The Russian war in Ukraine has hampered the European region’s economies, causing the euro to plummet 12% lower than the US dollar.
The Chief Market Analyst at Markets.com, Neil Wilson, told The Guardian that the euro neared parity with the dollar for the first time since 2002. He added that the economic situation further stokes recession fears in the bloc, and the currency cannot catch a bid.
PAY ATTENTION: Follow us on Instagram - get the most important news directly in your favourite app!
South Africans react to the weakened rand:
“We were told that, if Ramaphosa doesn’t become the president, the rand will be weak. Now he’s sitting president. The rand becomes weaker. What went wrong?”
“ANC economic policies are disastrous, we use our own currency but we have similar problems experienced by Zimbabwe that is using a dollar.”
Mpumalanga shutdown wrecks havoc for chrome and coal exporters, authorities on high alert for protests
“The man in charge is still not being questioned.”
“It’s all because of the Phala Phala farm gate.”
Zimbabwe plans to sell 22-carat gold coins to assist struggling economy, after losing dollar value
In a related matter, Briefly News also reported Zimbabwe will start selling gold coins to ease the country’s crumbling economy and inflation. The central bank said the coins would be available on sale from Monday, 25 July, in local currency, US dollars and other foreign currencies.
Governor John Mangudya said the Mosi-oa-tunya coin, which is named after the Victoria Falls, can be converted into cash.
New feature: check out news exactly for YOU ➡️ find "Recommended for you" block and enjoy!
Source: Briefly News