Nene warns of challenges as rand tumbles

12 June 2018 | Economics

The South African government is concerned by the rand's plunge to its lowest this year and will step up a “defence mechanism”, finance minister Nhlanhla Nene said, but he fell short of calling the currency's dip a crisis.

The rand dropped to 13.2875 against the US dollar on Friday, its weakest since December 18, Thomson Reuters data showed, as the country's economy and slowed and global investors shied away from riskier assets.

“Call it very challenging times. It then depends when you begin to call it a crisis,” Nene told the Sunday Times.

“But these are very challenging times, and it's for this reason that we can't be complacent about it. We actually just need to step up our defence mechanism.”

He did not say what measures South Africa could take.



Risk appetite

South Africa's rand suffered last week when data showed the economy shrank by 2.2% in the first quarter of 2018, with the most significant falls in agriculture, manufacturing and mining.

At the same time, risk appetite among investors has eroded on speculation Europe's massive monetary stimulus is nearing an end, compounded by uncertainty over trade relations before a meeting of G7 leaders.

The rand had rallied when Cyril Ramaphosa seemed set to be elected leader of the ruling African National Congress in December. His election as state president in February, days after Jacob Zuma was forced out as leader by the ruling party, gave the currency even further momentum.

Ramaphosa pledged to clean up governance, deal with high unemployment and improve basic services, igniting a wave of optimism. But the recent poor economic data has eroded some of the enthusiasm in Africa's most industrialised economy. – Nampa/Reuters

Similar News

 

Petrol, diesel hikes fuel inflation

1 day - 16 August 2018 | Economics

Annual transport inflation which rose from 7.2% in June to 8.9% last month, drove overall inflation up from 4% to 4.5% - the highest since...

Consumer hurt more by recession

1 day - 16 August 2018 | Economics

Jo-Maré Duddy – The impact of the downtrodden economy on the consumer last year was worse than anticipated with the final official figures showing that...

Junk here to stay

1 day - 16 August 2018 | Economics

Jo-Maré Duddy – Namibia’s creditworthiness is likely to remain junk for the foreseeable future, analysts have said in reaction to Fitch Ratings’ affirming the country’s...

BoN shows mercy … for now

1 day - 16 August 2018 | Economics

Denver Kisting - Namibians have again been spared an interest rate hike by the country’s central bank.However, this news competes against an announcement that the...

Windhoek, Walvis swim in foreign money

1 day - 16 August 2018 | Economics

ELLANIE SMIT A global report has ranked Windhoek and Walvis Bay among the cities in Africa attracting the highest...

Africa Briefs

1 day - 16 August 2018 | Economics

SA's 2018 growth to be ‘much lower’South Africa's economic growth this year will be "much lower" than initial expectations, the central bank said in a...

Namibia still stuck in ‘junk’

2 days ago - 15 August 2018 | Economics

Fitch Ratings has affirmed Namibia’s Long-Term Foreign-Currency Issuer Default Rating (IDR) at 'BB+' with a Stable Outlook. In layman’s terms, it means the government’s creditworthiness...

Recession slightly worse than expected

2 days ago - 15 August 2018 | Economics

Namibia’s economy grew by -0.9% in 2017, the Namibia Statistics Agency (NSA) said in its Annual National Accounts released today. In its preliminary report released...

Inflation at highest level this year

2 days ago - 15 August 2018 | Economics

Data released by the Namibia Statistics Agency (NSA) shows the annual inflation figure for July at 4.5% - up from 4% the previous month.The main...

BoN keeps interest rates steady

2 days ago - 15 August 2018 | Economics

The Bank of Namibia (BoN) has just announced that its monetary policy committee decided to keep the central bank’s repo rate unchanged at 6.75%.That means...

Latest News

Seas gets 25 years

12 hours ago | Justice

Zenobia Seas, 33, was sentenced to 25 years' effective imprisonment today by High Court Judge Christie Liebenberg. She pleaded guilty to a charge of murdering...

More fuel shocks

23 hours ago | Energy

Independent economist Klaus Schade says the weakening of the South African rand means motorists in that country and Namibia will continue to fork out more...

Cops probe 'murder ­conspiracy'

23 hours ago | Crime

The police say they are investigating allegations that the recent death of a Nigerian professor in Windhoek was not suicide.The family of Dr Ayetuoma Cyril...

Dobberstein new MD for advertising...

23 hours ago | Business

Elizabeth JosephWeathermen & Co recently appointed Nadja Dobberstein as its managing director.Born and raised in Namibia, she is a passionate and driven individual who strives...

Utilising apps to manage and...

23 hours ago | Business

Businesses, regardless of their size or function, should consider utilising applications for agility and efficiency. PowerCom Pty Ltd's CEO, Alisa Amupolo, made these remarks during...

Ondonga mess has festered too...

23 hours ago | Columns

The Ondonga succession issue has been a hot potato for years and there have been lingering fears that the considerable infighting could lead to dangerous...

Third woman killed in the...

23 hours ago | Crime

The Oshikoto police yesterday arrested a 26-year-old man for allegedly murdering his girlfriend.The suspect allegedly hacked Albertina Shipale Sackaria to death with a panga at...

Business Park still in limbo

23 hours ago | Business

A N$19 million tender for the construction of an SME business park at the Omahenene border post in the Omusati Region has suffered another setback.The...

Haukambe’s resilience an Afrox asset

23 hours ago | Business

Michelline Nawatises He is responsible for managing central and northern towns. He joined Afrox in 2013 as an account controller and moved to sales in...

Load More