The Rand has come under pressure since the start of the week. Debates about a South African central bank’s change of mandate are pounding the ZAR, economists at Commerzbank report.
Debates about a change of the SARB mandate
“The plans of the governing party ANC are causing uncertainty amongst ZAR investors. They fear for the central bank’s autonomy.”
“It is possible that Rand will catch up in the current market environment if this issue drops off the market’s radar again. However, investors are likely to keep their eyes on the subject medium-term.”