The last 2 weeks of January reported the rise and fall of the South African currency, Rand. The currency’s fluctuation can be traced back in September 2018, when the nation’s economists forewarned of poor economic fundamentals that would affect the currency.
An economists team had studied the matter and expected a mild improvement of 0.64% in the second quarter of 2018 but the situation only got worse. 5 months later, a Reuters poll has shown that the Rand will lose half of its 7% gains made against the United States Dollar in the next 12 months.
The poll attributes the weakening to weak growth and pressure by fiscal constraints. The poll says in 12 months, the currency will have weakened by 3% to 13.85 per dollar.