The rand remained stable during much of Friday’s trading session as traders assessed the South African Reserve Bank’s decision to keep interest rates unchanged.
It also remains sensitive to the ongoing efforts to reduce the steep US tariffs on imports from South Africa. The rand was trading at 17.34 to the dollar, only slightly different from its previous closing value.
On Thursday, South Africa’s central bank decided to maintain its key lending rate at 7%, opting not to ease monetary policy further while it evaluates the effects of previous rate cuts.
Investors are also closely monitoring tariff updates, especially following a meeting between South African Trade Minister Parks Tau and US Trade Representative Jamieson Greer.
Tau’s office stated that the meeting was both cordial and constructive. Last month, US President Donald Trump imposed a 30% tariff on imports from South Africa after President Cyril Ramaphosa’s government was unable to secure a trade agreement.
On Monday, 22 September, the rand was trading at R17.36 to the dollar, R23.36 to the pound and R20.36 to the Euro. Oil was trading slightly lower at $67.10 a barrel.
Here are five important things happening in and affecting South Africa today:
40 contractors blacklisted: The Public Works Department has blacklisted 40 contractors for corruption and non-performance, the first time in 20 years. In 2002, only one company faced such action. Minister Dean Macpherson stated that the department is improving its blacklisting procedures to recover misused public funds more efficiently.
Risk to property values: Sakeliga has warned that uncertainty over expropriation laws may harm property values and investor confidence in South Africa. This comes after a legal dispute involving a 34-hectare property in Ekurhuleni, which was expropriated without compensation in 2019 and claimed to be worth R30 million.
Andre de Ruyter reveals the reason he left Eskom: Andre de Ruyter mentioned that a significant reason for his departure was his frustration with the slow pace at which the government addressed criminal activities at Eskom and failed to provide him with the necessary political support to resolve the utility’s challenges.
Tshwane VIP problem: Tshwane will issue a R35,000 monthly allowance for VIP protectors instead of overtime, despite union opposition. Protection, typically limited to the mayor and key officials, also extends to other committee members and the municipal manager.
No more cell signal for inmates: Cape Town Mayor Geordin Hill-Lewis has called for the implementation of cellphone signal-blocking technology at Pollsmoor Prison, as he believes that extortion and gang activities are being orchestrated from within the facility.