The rand remained stable on Friday as investors awaited the release of monthly data from the central bank, the revenue service, and the National Treasury for insights into the health of Africa’s largest economy.
The rand was trading at 16.2275 against the dollar, slightly changed from its previous close of 16.2375.
The South African Reserve Bank is set to release data on money supply and private sector credit figures for April.
Economists forecast that the annual growth in private sector credit is expected to decline from 8.5% in March to 8.2% in April, likely due to the many public holidays in April, which may have reduced economic activity.
South Africa’s revenue service and the National Treasury are anticipated to publish trade and budget balance data, respectively.
Investec economists suggested that the trade account is likely to remain in surplus in April, although it may narrow somewhat. On the Johannesburg Stock Exchange, the Top-40 index was up 0.3% in early trading.
On Monday, 1 June, the rand was trading at R16.22 to the dollar, R21.83 to the pound, and R18.90 to the euro. Gold is trading lower at $4,515.56 an ounce, while oil prices were at $93.24 a barrel.
5 important things happening in South Africa today
Dis-Chem being investigated: The Competition Commission is investigating a Dis-Chem discount scheme after a complaint from Health Minister Aaron Motsoaledi. Competition Commission spokesperson Siya Makunga confirmed the investigation. [News24]
Money flooding into South Africa: JSE CEO Valdene Reddy says more money is being reinvested in South Africa, with the local equity market among the best performers globally. South Africa’s equity market has seen strong growth since the 2024 National Elections. While most of the rise came from local investors, there has been increased investment from foreign investors. [BusinessTech]
SARS warning to anyone doing business with the government: Companies doing business with the South African government are facing growing scrutiny as SARS expands its ability to trace suspicious payments, challenge questionable deductions and trigger criminal investigations. [Daily Investor]
Changes coming to free basic electricity allocation: Electricity and energy minister Kgosientsho Ramokgopa revealed that his department was considering adjusting the Free Basic Electricity (FBE) allocation to 150 kilowatt-hours (kWh) per month. [MyBroadband]
Good news for South Africa: On Friday, S&P Global affirmed South Africa’s long-term foreign currency rating at BB and local currency rating at BB+, keeping the outlook positive. This came a week after fellow credit rating agency Moody’s lifted South Africa’s outlook to positive. [Business Day]
