Financial market analysts are revising their forecasts for the rand as they anticipate economic reforms under the newly formed government of national unity (GNU) in South Africa. Absa predicts the rand to reach R17.50/$ by the end of 2024, rising to R17.25/$ by Q1 2025, with a potential for R17/$ soon after if optimism around the GNU prevails and global risk appetite improves. This is a more positive outlook compared to their previous estimate of R18/$ at year-end.
Similarly, UBS expects the rand to strengthen to R17.80/$ by the end of 2024 following the formation of the GNU and the participation of key parties. Just a week prior, they projected a rate of R18/$ by mid-2025 due to uncertainty over potential coalitions. These updated forecasts reflect growing confidence in the GNU to drive much-needed reforms in the South African economy.
Stay informed about the latest developments shaping the country’s future by joining News24’s free subscription trial. Gain access to insightful journalism that informs, empowers, and inspires for a prosperous future.