The rand is paying the price for South Africa’s woes, with the R20/$ level now firmly in sight.
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The rand plunged to a record low as another jumbo rate hike raised concerns about the outlook for economic growth.
The South African Reserve Bank has raised its repo rate by 50 basis points to 8.25% on continued inflation worries.
South Africa’s headline consumer inflation slowed more than expected in April to 6.8% year on year.
The rand fell past R19/US$ for the first time in three years as investors fretted over the country’s struggles with energy shortages.
The South African Reserve Bank is introducing upgraded banknotes and coins from 4 May to combat counterfeiting and to stay abreast of advances in technology.
The South African Revenue Service said ongoing power cuts have had a “debilitating” effect on the economy and revenue collection.
South Africa’s electricity crisis is costing the economy as much as R899-million/day, according to central bank estimates.
Government will take on a portion of Eskom’s debt in a staggered manner to avoid a spike in the country’s debt-to-GDP ratio.
The South African Reserve Bank said there had been no impact from a reported breach of its systems four months ago.