The rand had a tough ride in 2023, losing more than 9% of its value against the dollar.
It was the fourth worst-performing major currency in the world – after Argentina (which is in economic crisis, with its new government slashing the value of its currency by more than 50%), Russia (which has been hit by international sanctions after it triggered a war) and Turkey (which has inflation of 60% and interest rates above 40%).
The rand is currently priced as if South Africa is a failed state – not for failings of its state, says Johann Els, group chief economist of Old Mutual. The local currency has been hit by negativity over load shedding, Transnet and other problems that are inhibiting growth.
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