Reported 6 months ago
The South African rand saw a 0.5% increase to 18.8883 per dollar following the African National Congress's announcement of forming a government of national unity after losing its parliamentary majority. While the proposal initially calmed market nerves, the rising cost of hedging against rand declines suggests lingering uncertainty. President Cyril Ramaphosa mentioned engagements with various political parties, including the Democratic Alliance and the Economic Freedom Fighters, aiming to isolate those inciting chaos. Analysts like Barclays' Michael Kafe expressed concerns over potential internal disputes and social unrest with the formation of a unity government.
Source: YAHOO