Rand would be at R17/$ without Ramaphosa at the helm - Investec's Annabel Bishop | Fin24
 
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Rand would be at R17/$ without Ramaphosa at the helm - Investec's Annabel Bishop

Jun 11 2018 16:44
Fin24

The rand has been losing ground to the dollar over the past week, but the exchange rate would have been worse had Cyril Ramaphosa not won the ANC presidency in a tightly-fought race with Nkosazana Dlamini-Zuma last year, according to Investec's chief economist Annabel Bishop.  

On Monday at 16:21, the rand was trading at R13.08 to the greenback, up 0.17% on the day. 

Ramaphosa’s victory for the post of president of the ANC in mid-December paved the way for him become South African president. The local currency strengthened immediately after Ramaphosa beat out Dlamimi-Zuma, reaching a low of R11.51/$ in late February. 

It slowly started to lose steam in mid-March.  

Last week, amid broad emerging market weakness and global risk-off, the local currency lost over 4% to the greenback, reaching a low of  R13.29/$ on Friday. 

But if Ramaphosa hadn't won at Nasrec, the rand could be changing hands at around R17/$, said Bishop. 

"[The] key point for the domestic currency is that it would likely be much weaker currently, indeed closer to R17.00/USD, R19.00/EUR and R22.00/GBP, without the Ramaphosa Presidency effect," Bishop said. 

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