• Restoring sanity to SA

    We should be driven by the thought that SA belongs to all who live in it, says Solly Moeng.

  • Clamouring for action

    2017 will see battles between politicians as well as those tired of politicking, says Daniel Silke.

  • Realistic dreaming

    Preparation and sound advice will turn entrepreneurial dreams into reality, says Ian Mann.

All data is delayed
Loading...
See More

For first time, SA assets abroad outstrip inflows

Jan 06 2016 07:35
Rene Vollgraaff

Johannesburg - The value of South African assets abroad outstripped foreign investment into the country for the first time on record - thanks to the rand’s slump.

The difference between South African foreign assets and liabilities swung to a surplus of R113bn ($7.2bn) at the end of September from a deficit of R131bn at the end of June, the central bank said in a statement on its website on December 31. That’s the first positive reading since the Pretoria-based bank began recording the data at the end of 1956.

“The volatility and decline in domestic and global equity markets as well as the significant decline in the end-of-period exchange rate of the rand resulted in a respective modest decline in foreign liabilities and a substantial increase in South Africa’s foreign assets,” the Reserve Bank said.

The rand plunged 25% against the dollar last year, the worst performance after Brazil’s real among major currencies tracked by Bloomberg. The South African currency has been under pressure because of a slump in commodity prices, lackluster economic growth and rising interest rates in the US. It fell to a record low of R6.0543 against the dollar in December after President Jacob Zuma unexpectedly fired his finance minister.

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

NEXT ON FIN24X

 
 
 
 

Company Snapshot

We're talking about: SMALL BUSINESS

From fossils to finance – that’s been the career trajectory of Dr Merrill van der Walt, a palaeontologist until recently. She is now a statistician with a difference.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

SA's avoidance of junk status by rating agencies: Moody's and Fitch

Previous results · Suggest a vote

Loading...