FIRM: The South Africa rand extended a post-election rally after president Cyril Ramaphosa announced a new cabinet. Photo: Reuters
FIRM: The South Africa rand extended a post-election rally after president Cyril Ramaphosa announced a new cabinet. Photo: Reuters

Rand rallies below R18/$ as Godongwana retains finance post

Colleen Goko
South Africa’s rand extended a post-election rally after president Cyril Ramaphosa announced a new cabinet that he said would prioritise rapid and sustainable growth.

The currency led gains among emerging-market peers yesterday, advancing 1.1% to reach R17.98 per dollar at 09:00, crossing below the psychologically important R18 barrier for the first time in nearly 10 days, before settling at R18.01. The yield on benchmark bonds fell 14 basis points to 11.24%, heading toward April 2023 lows.

Analysts at Rand Merchant Bank said Ramaphosa’s retention of Enoch Godongwana as finance minister was particularly significant for domestic markets. The reappointment signals a continuation of a prudent fiscal approach and adherence to projections outlined in the February budget and medium-term expenditure framework, they said.

Momentum indicators suggest further rand appreciation is likely this week, the analysts added, predicting that the rand would move toward R17.90 per dollar.

Ramaphosa also included members of the Democratic Alliance (DA) — considered business-friendly by investors — in his cabinet, with leader John Steenhuisen named agriculture minister. The coalition government was formed after the African National Congress (ANC) lost its parliamentary majority.

Rand whipsaws

Politics have whipsawed the rand over the past month.

The currency weakened toward 19 when it became clear that the ANC would lose more support than initially expected in the 29 May vote. It then rallied below 18 in mid-June after a government of national unity was announced, which excluded left-learning parties whose policy proposals had made investors nervous. The rand then began to weaken again as investors awaited news on which parties would secure which positions in the cabinet.

Overall, though, the rand as well as South African stocks and bonds have benefitted from the vote. The rand is one of only two major emerging-market currencies to gain against the dollar this year, with the other being the Russian ruble. South Africa’s benchmark stock index also rose to a record high in the aftermath of the vote.

- News24

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Currie Cup: NovaVit Griffons 15 vs 64 DHL Western Province | Hollywoodbets Sharks XV 21 vs 31 Airlink Pumas | Vodacom Bulls 25 vs 13 Toyota Cheetahs XV | Fidelity ADT Lions 25 vs 13 Suzuki Griquas Rugby World Cup U20: England U20 21 vs 13 France U20 | Australia U20 6 vs 14 Argentina U20 | Ireland U20 24 vs 38 New Zealand U20 | Italy U20 13 vs 24 Georgia U20 | Wales U20 31 vs 47 South Africa U20 | Spain U20 24 vs 19 Fiji U20 Katima Mulilo: 13° | 33° Rundu: 13° | 34° Eenhana: 13° | 34° Oshakati: 14° | 32° Ruacana: 14° | 33° Tsumeb: 17° | 30° Otjiwarongo: 11° | 29° Omaruru: 12° | 30° Windhoek: 8° | 25° Gobabis: 8° | 30° Henties Bay: 11° | 17° Wind speed: 16km/h, Wind direction: S, Low tide: 10:00, High tide: 04:01, Low Tide: 22:27, High tide: 16:30 Swakopmund: 12° | 15° Wind speed: 15km/h, Wind direction: SW, Low tide: 09:58, High tide: 03:59, Low Tide: 22:25, High tide: 16:28 Walvis Bay: 10° | 20° Wind speed: 17km/h, Wind direction: SW, Low tide: 09:58, High tide: 03:58, Low Tide: 22:25, High tide: 16:27 Rehoboth: 9° | 27° Mariental: 10° | 27° Keetmanshoop: 9° | 24° Aranos: 9° | 28° Lüderitz: 11° | 19° Ariamsvlei: 10° | 25° Oranjemund: 9° | 18° Luanda: 20° | 22° Gaborone: 11° | 27° Lubumbashi: 13° | 31° Mbabane: 12° | 23° Maseru: 3° | 19° Antananarivo: 12° | 25° Lilongwe: 16° | 30° Maputo: 17° | 24° Windhoek: 8° | 25° Cape Town: 9° | 15° Durban: 13° | 21° Johannesburg: 12° | 22° Dar es Salaam: 21° | 31° Lusaka: 16° | 30° Harare: 14° | 27° Currency: GBP to NAD 23.53 | EUR to NAD 19.86 | CNY to NAD 2.51 | USD to NAD 18.26 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.3 | EGP to NAD 0.37 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.69 | ZWL to NAD 0.04 | BRL to NAD 3.28 | RUB to NAD 0.21 | INR to NAD 0.22 | USD to DZD 134.08 | USD to AOA 872.64 | USD to BWP 13.58 | USD to EGP 48.36 | USD to KES 130.98 | USD to NGN 1584.2 | USD to ZAR 18.26 | USD to ZMW 25.9 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1757.83 Down -0.25% | Casablanca Stock Exchange (CSE) MASI 13623.01 Up +0.20% | Egyptian Exchange (EGX) 30 Index 28783.24 Up +0.45% | Botswana Stock Exchange (BSE) DCI 9380.4 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 391.98/OZ DOWN -0.0081 | Copper US$ 4.19/lb DOWN -0.0139 | Zinc US$ 2 743.30/T DOWN -1.55% | Brent Crude Oil US$ 82.76/BBP DOWN -0.0071 | Platinum US$ 944.71/OZ DOWN -0.0261 Sport results: Currie Cup: NovaVit Griffons 15 vs 64 DHL Western Province | Hollywoodbets Sharks XV 21 vs 31 Airlink Pumas | Vodacom Bulls 25 vs 13 Toyota Cheetahs XV | Fidelity ADT Lions 25 vs 13 Suzuki Griquas Rugby World Cup U20: England U20 21 vs 13 France U20 | Australia U20 6 vs 14 Argentina U20 | Ireland U20 24 vs 38 New Zealand U20 | Italy U20 13 vs 24 Georgia U20 | Wales U20 31 vs 47 South Africa U20 | Spain U20 24 vs 19 Fiji U20 Weather: Katima Mulilo: 13° | 33° Rundu: 13° | 34° Eenhana: 13° | 34° Oshakati: 14° | 32° Ruacana: 14° | 33° Tsumeb: 17° | 30° Otjiwarongo: 11° | 29° Omaruru: 12° | 30° Windhoek: 8° | 25° Gobabis: 8° | 30° Henties Bay: 11° | 17° Wind speed: 16km/h, Wind direction: S, Low tide: 10:00, High tide: 04:01, Low Tide: 22:27, High tide: 16:30 Swakopmund: 12° | 15° Wind speed: 15km/h, Wind direction: SW, Low tide: 09:58, High tide: 03:59, Low Tide: 22:25, High tide: 16:28 Walvis Bay: 10° | 20° Wind speed: 17km/h, Wind direction: SW, Low tide: 09:58, High tide: 03:58, Low Tide: 22:25, High tide: 16:27 Rehoboth: 9° | 27° Mariental: 10° | 27° Keetmanshoop: 9° | 24° Aranos: 9° | 28° Lüderitz: 11° | 19° Ariamsvlei: 10° | 25° Oranjemund: 9° | 18° Luanda: 20° | 22° Gaborone: 11° | 27° Lubumbashi: 13° | 31° Mbabane: 12° | 23° Maseru: 3° | 19° Antananarivo: 12° | 25° Lilongwe: 16° | 30° Maputo: 17° | 24° Windhoek: 8° | 25° Cape Town: 9° | 15° Durban: 13° | 21° Johannesburg: 12° | 22° Dar es Salaam: 21° | 31° Lusaka: 16° | 30° Harare: 14° | 27° Economic Indicators: Currency: GBP to NAD 23.53 | EUR to NAD 19.86 | CNY to NAD 2.51 | USD to NAD 18.26 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.3 | EGP to NAD 0.37 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.69 | ZWL to NAD 0.04 | BRL to NAD 3.28 | RUB to NAD 0.21 | INR to NAD 0.22 | USD to DZD 134.08 | USD to AOA 872.64 | USD to BWP 13.58 | USD to EGP 48.36 | USD to KES 130.98 | USD to NGN 1584.2 | USD to ZAR 18.26 | USD to ZMW 25.9 | USD to ZWL 321 | Stock Exchange: JSE All Share Index Same 0 | Namibian Stock Exchange (NSX) Overall Index 1757.83 Down -0.25% | Casablanca Stock Exchange (CSE) MASI 13623.01 Up +0.20% | Egyptian Exchange (EGX) 30 Index 28783.24 Up +0.45% | Botswana Stock Exchange (BSE) DCI 9380.4 Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 391.98/OZ DOWN -0.0081 | Copper US$ 4.19/lb DOWN -0.0139 | Zinc US$ 2 743.30/T DOWN -1.55% | Brent Crude Oil US$ 82.76/BBP DOWN -0.0071 | Platinum US$ 944.71/OZ DOWN -0.0261