Rand Strengthens Against the US Dollar, South Africans Have Questions

Rand Strengthens Against the US Dollar, South Africans Have Questions

  • The South African rand over the weekend picked up strength while the dollar took a slight hit in value
  • This was after the dollar lost strength in the face of slow job growth and an expected cut in interest rates by its Federal Reserve
  • Dr Kenneth Creamer, economist at Wits University told Briefly News why he believed the rand was strengthening
  • South Africans roasted Mzansi's currency, and some made political jokes relating to how the rand has been strengthened

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Tebogo Mokwena, Briefly News's current affairs journalist, covered current affairs relating to the economy, finance, banks, and state-owned enterprises during his seven years at Daily Sun and Vutivi Business News.

The Rand strengthened in comparison to the dollar and South Africans had questions
South Africans discussed the strengthening of the rand against the dollar. Image: Bloomberg Creative Photos
Source: Getty Images

JOHANNESBURG—South African markets can expect a boost after the rand rose due to low job growth in the United States.

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Rand strengthened against the dollar

According to SABC News, analysts revealed that the dollar, currently trading at R18.19, experienced a slight nosedive after the United States of America experienced a slow job growth. There is also an expectation that the US Federal Reserve could decrease the interest rates. Experts also revealed that Cyril Ramaphosa's cabinet announcement contributed to stabilising the markets and showing more confidence.

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Wits economist speaks to Briefly News

Dr Kenneth Creamer, an economist at Wits University, told Briefly News that the rand strengthened domestically because of the new government and internationally because of a lower dollar demand.

"A stronger Rand tends to push down inflation, including fuel prices, in South Africa, ultimately making it easier for South Africa to reduce its interest rates in the months ahead. A stronger Rand also makes it easier for South Africa to import the machinery and technology needed for increased capital investment. That being said, it is important that the Rand does not become too strong, as this will mean that exports become less competitive and local manufacturers find it hard to create jobs and compete with cheaper imports. Macroeconomics is about getting these policy balances right," he said.

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South Africans make jokes

Netizens made fun of the rand and the economy, and some questioned the South African currency's performance.

Mdletshe Amir Sbhaka-Bhaka said:

"The Rand is a DA member in good standing indeed."

Xolani Nokwe said:

"The markets are clearly manipulating the general puoblic's psyche with regards to Ramastellenbosch. The Rand has absolutely no reason to strengthen against the dollar."

James TheHandyman said:

"And I see people praising the circus government already. The dollar weakened against a lot of currencies. This has nothing to do with the GNU or the DA."

Morerwa Cecil asked:

"Why is our rand permanently benchmarked against the dollar?"

Sizwe Grootboom said:

"This rand is partisan to the capitalist system, shame. It favours them all the time."

SA concerned that politicians are silent about rand manipulation

In a similar article, Briefly News reported that South Africans questioned politicians' silence on the rand manipulation.

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Former president Thabo Mbeki called for those responsible for the Rand manipulation to be held accountable, and netizens noted that politicians were worryingly quiet about it.

Source: Briefly News

Authors:
Tebogo Mokwena avatar

Tebogo Mokwena (Current Affairs editor) Tebogo Mokwena is a Current Affairs Editor at Briefly News. He has a Diploma in Journalism from ALISON. He joined Daily Sun, where he worked for 4 years covering politics, crime, entertainment, current affairs, policy, governance and art. He was also a sub-editor and journalist for Capricorn Post before joining Vutivi Business News in 2020, where he covered small business news policy and governance, analysis and profiles. He joined Briefly News in 2023. Tebogo passed a set of trainings by Google News Initiative Email: tebogo.mokwena@briefly.co.za