This ZAR report will examine the factors that could affect exchange rates in the short term to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low for the past 3 months.

Currency Pair% ChangeDifference on £200,000
GBP/ZAR0.5%ZAR 2,000
South African Rand exchange rates

Zuma survives vote of non-confidence – South African Rand falls

The Rand started the week as one of the markets best performers as investors were drawn in by a potential vote of no-confidence that could have put an end to ANC leader Jacob Zuma’s administration. Given the allegations to corruption, Zuma’s position has long been regarded as Rand negative by the markets so ZAR holders would have been hoping that the surprise ballot call could have helped the South African Rand break from its shackled. Zuma survived however and Sterling rose by almost 3%, making a £200,000 transfer over R10,000 more expensive. This was further compounded by threats from North Korea encouraging investors to move funds out of commodity base currencies, like the Rand, to safe haven currencies.

When should I sell my ZAR?

Much like South Africa’s current batting line up, scoring points with the currency market following Zuma’s victory is going to be an uphill battle for Rand holders. Unemployment currently sits at 30%, a near 14 year high and with Zuma’s ANC consistently leaning on it’s fragile resource based economy it would be understandable to think the Pound might be able to make further inroads in the near future. It’s worth noting however that the Rand has consistently found support in the mid 17s throughout 2017. Given we are currently sitting at multi month highs, if you have a South African Rand requirement in the near future, it may be worth capitalising on this recent fall in fortune before Zuma’s position comes into question once more. His opposition, the Democratic Alliance, has already called for an early general election and could well spur the Rand on once more. It may be wise to get in contact with your account manager to make sure you maximise your returns.

Thank you for reading my ZAR report, if you have an upcoming transfer and have a query I would be more than happy to assist. Please feel free to get in touch here for more information.

News

Read more articles
Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.