Currency Note Worldwide

Boost for the South African rand

By Smart Currency September 16th, 2015

Yesterday South Africa reported its smallest current account deficit in four years, with quarterly figure growing by 3.1%, compared to 4.7% previously. In actual fact it has been the rand’s weakness over the past year that has been the key contributor to these improved statistics, as, with the currency having fallen 14% in value against the US dollar, exports from South Africa have become more affordable. Although there has been a fall in commodity prices, which should have reduced their overall profit, the slump in the rand has meant that the quantity of commodities sold has improved – as a result, South Africa is enjoying a trade surplus for the first time in three years. Yesterday’s data helped to boost the rand by nearly 1% against sterling, and 0.5% against the US dollar.

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