20°C / 22°C
  • Wed
  • 16°C
  • 8°C
  • Thu
  • 16°C
  • 8°C
  • Fri
  • 19°C
  • 9°C
  • Sat
  • 14°C
  • 4°C
  • Sun
  • 16°C
  • 2°C
  • Wed
  • 21°C
  • 10°C
  • Thu
  • 18°C
  • 11°C
  • Fri
  • 15°C
  • 11°C
  • Sat
  • 15°C
  • 11°C
  • Sun
  • 17°C
  • 9°C
  • Wed
  • 18°C
  • 10°C
  • Thu
  • 19°C
  • 9°C
  • Fri
  • 21°C
  • 10°C
  • Sat
  • 15°C
  • 6°C
  • Sun
  • 18°C
  • 5°C
  • Wed
  • 17°C
  • 7°C
  • Thu
  • 18°C
  • 7°C
  • Fri
  • 21°C
  • 8°C
  • Sat
  • 16°C
  • 2°C
  • Sun
  • 18°C
  • 0°C
  • Wed
  • 21°C
  • 15°C
  • Thu
  • 28°C
  • 16°C
  • Fri
  • 26°C
  • 18°C
  • Sat
  • 24°C
  • 16°C
  • Sun
  • 19°C
  • 14°C
  • Wed
  • 24°C
  • 10°C
  • Thu
  • 26°C
  • 13°C
  • Fri
  • 17°C
  • 12°C
  • Sat
  • 13°C
  • 10°C
  • Sun
  • 18°C
  • 8°C
  • Wed
  • 23°C
  • 8°C
  • Thu
  • 16°C
  • 10°C
  • Fri
  • 12°C
  • 8°C
  • Sat
  • 13°C
  • 7°C
  • Sun
  • 16°C
  • 6°C
  • Wed
  • 20°C
  • 9°C
  • Thu
  • 16°C
  • 11°C
  • Fri
  • 14°C
  • 10°C
  • Sat
  • 14°C
  • 9°C
  • Sun
  • 16°C
  • 9°C
  • Wed
  • 19°C
  • 10°C
  • Thu
  • 20°C
  • 8°C
  • Fri
  • 24°C
  • 9°C
  • Sat
  • 15°C
  • 5°C
  • Sun
  • 18°C
  • 3°C
  • Wed
  • 19°C
  • 3°C
  • Thu
  • 19°C
  • 5°C
  • Fri
  • 22°C
  • 7°C
  • Sat
  • 9°C
  • 0°C
  • Sun
  • 14°C
  • -2°C
  • Wed
  • 16°C
  • 12°C
  • Thu
  • 24°C
  • 11°C
  • Fri
  • 28°C
  • 10°C
  • Sat
  • 27°C
  • 8°C
  • Sun
  • 20°C
  • 5°C
  • Wed
  • 19°C
  • 8°C
  • Thu
  • 24°C
  • 12°C
  • Fri
  • 14°C
  • 11°C
  • Sat
  • 12°C
  • 8°C
  • Sun
  • 16°C
  • 8°C

Rand falls as economy faces deep recession

The central bank projects that the economy will contract 6.1% in 2020, while the International Monetary Fund forecasts a 5.8% dip.

Picture: pixabay.com

JOHANNESBURG - The rand eased against the dollar early on Wednesday, as the currency continued to nurse losses a day after the central bank unexpectedly cut lending rates and the finance minister warned of a deep recession this year.

At 0625 GMT, the rand traded at R18.4770 per dollar, 0.91% weaker than it’s previous close.

The South African Reserve Bank on Tuesday reduced its main lending rate by another 100 basis points to 4.25% to address the deepening economic impact of the coronavirus outbreak, and signalled further cuts could follow.

Separately, Finance Minister Tito Mboweni acknowledged that there would be a deep recession this year because of the global COVID-19 pandemic.

“The downside risks are likely to dominate in the rand while an end of the corona crisis in not in sight,” analysts at Commerzbank wrote in a note.

The central bank projects that the economy will contract 6.1% in 2020, while the International Monetary Fund forecasts a 5.8% dip. Africa’s most industrialised nation was already in recession before it recorded its first case of the new coronavirus in March.

The country has the most confirmed coronavirus cases in sub-Saharan Africa, at 2,415, and that number is expected to rise significantly as more tests are conducted in far-flung rural areas and overcrowded informal settlements.

In fixed income, the yield on the 10-year government bond due in 2030 was 0.5 basis points to 10.425%.