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In South Africa, the currency enjoyed a period of strength in early 2022 based on high commodity prices and a different view of risk-on and risk-off. However, events in April showed just how vulnerable the rand remains to both internal and external shocks. “The onset of increased load-shedding and the flooding disaster in KwaZulu-Natal, as ...
D VOLATILITY. IT MATTER?1 Introduction The South African rand has been relatively volatile as the currency has flexibly responded to do. estic and external disturbances. Domestic shocks have been relatively large in recent years, elevating rand volatility to above the VIX (US stock price volatility, a commonly used in. icator of global risk ...
Mar 12, 2023 · One reason the rand is so vulnerable at the moment was revealed on Thursday by the South African Reserve Bank (SARB) in its quarterly breakdown of the balance of payments. The data showed that SA ...
Apr 17, 2023 · South Africa’s rand is traded in large volumes globally and is seen as a proxy for emerging market investment. It makes the currency highly exposed to external shocks and, thus, highly volatile. According to the IMF, the rand is one of the most volatile currencies globally compared to advanced economies and emerging market peers.
Low economic growth ahead. Economic growth in South Africa appears to be gaining momentum after a sluggish start in 2024. Post-general election, consumer and business confidence has risen, probably driven by increased trust in the Government of National Unity (GNU) and its potential reforms. However, the mining sector, which accounts for a ...
First, the rand trades in large volumes globally. Compared to major EMs, South Africa’s daily currency turnover in global markets scaled by official reserves is by far the highest partly as the rand is traded as EM proxy (Figure 4, left panel). Second, nonresident holdings of local assets are large in South Africa (right panel).
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Dec 13, 2019 · The rand is also subject to external shocks, at least through two important channels. First, the rand trades in large volumes globally. Compared to major EMs, South Africa’s daily currency turnover in global markets scaled by official reserves is by far the highest partly as the rand is traded as EM proxy (Figure 4, left panel). Second ...
