Reforms, prudent policies to boost rand: Lesetja Kganyago

The South African Reserve Bank governor, Lesetja Kganyago, believes that the rand has potential for further strengthening if the government continues with reforms and prudent policies. The currency has already seen a 2.5% increase against the US dollar this year, outperforming many other emerging market currencies.

Kganyago emphasized the importance of government action in maintaining this positive momentum, stating that structural reforms and prudent policies are crucial for boosting the currency, as well as supporting bonds and stocks in the country. Recent reforms announced by the National Treasury in various sectors indicate a commitment to fiscal responsibility and economic growth.

Since the ANC’s electoral setback in May, where they had to collaborate with other parties, there has been a restoration of investor and consumer confidence in South Africa. The governor also mentioned ongoing efforts to lower the inflation target and enhance the country’s competitiveness.

Overall, the future looks promising for the rand as long as the government remains on the path of reform and fiscal discipline.

Source: Reuters