Economists are growing increasingly concerned about South Africa’s economy because the country’s three major macroeconomic problems – lacklustre economic growth, growing inflation and very high unemployment – have been exacerbated by a series of major disruptions.
Policies often neglect the role of space and geography but growing evidence shows the importance of place and location for productivity, growth and development.
The country has approached the International Monetary Fund (IMF), the World Bank, and African Development Bank to source funding that will contribute to its R500 billion rescue package.
At 1500 GMT, the rand was 0.1% firmer at 14.0750 per dollar, backtracking slightly after reaching a session-strongest 14.0375 before bids stalled just shy of the 14.00 technical resistance mark seen by traders as key to moves in either direction.
Dr Jack
Government bonds also gained, with the yield on the benchmark 2026 bond falling 0.5 basis points to 8.385%.
I am sure many South Africans who are increasingly having to make do with less would probably wish that the most pressing matter in the minds of those in charge of government was the economy.
At 0640 GMT, the rand was 0.39% weaker at 13.6600 per dollar, its weakest since 29 January, compared with an overnight close of 13.6250 in New York.
S&P added in its report that South Africa’s external metrics were solid and that its monetary flexibility was a credit strength.
At 0640 GMT the rand was 0.6% weaker at R12.6625 per dollar compared to a close of R12.5875 overnight in New York.
At 1501 GMT, the rand was R12.7100 per dollar, 0.45% weaker than its close of on Tuesday. The currency had fallen to a session low of R12.7175/dollar.
With the United States meeting to decide on interest rates, a number of emerging market currencies have weakened against the greenback.
At 1525 GMT the rand was steady at 0.02% at R12.4325 per dollar, having fallen as far as R12.5325 on Wednesday, its weakest since 10 January.
At 1530 GMT the rand was down 1.1% at R12.4675 per dollar, its weakest since 10 January, after hitting a low of R12.5325 as emerging-market currencies dropped.
Finance Minister Nhlanhla Nene is attending the 2018 spring meetings of the International Monetary Fund and world bank group in Washington DC.
At 1500 GMT the rand was 0.42% firmer at R11.9350 against the US dollar, a touch softer than the session-best R11.9275 but its strongest in a week.
Headline annual consumer inflation slowed to 3.8% in March from 4.0% in February, the lowest figure since January 2011, Statistics SA said.
At 1540 GMT the rand was 0.61% weaker at R12.0125 per dollar, compared to Wednesday’s close of R11.9400.
