Rand leads EM currency gains as traders digest Ramaphosa speech

News24
14 Feb 2020, 17:40 GMT+10

The rand led gains among emerging-market currencies on Friday as investors assessed President Cyril Ramaphosa's pledges to overhaul South Africa's electricity industry and curb government spending.

While offering little that is new on the planned restructuring of Eskom, Ramaphosa announced sweeping measures Thursday to address power shortages and reduce dependence on the debt-stricken utility.

He warned that the nation's debt trajectory is unsustainable and said Finance Minister Tito Mboweni will announce spending cuts in the Budget on February 26, with the government and labour unions in talks to reduce the state wage bill.

Key economic takeaways from Ramaphosa's State of the Nation Address

The rand climbed 0.7% to 14.8506 per dollar by 13:34*, heading for its best weekly performance this year. Yields on 10-year sovereign dollar bonds dropped two basis points to 4.66%, the lowest level on a closing basis since September 6.

"The speech touched on a broad range of domestic concerns, ranging from electricity supply, state-owned enterprises, youth unemployment, climate change and access to education," said Siobhan Redford, a Johannesburg-based analyst at FirstRand Bank. "It is fair to say the president hit all the right notes in his annual song to the people of the South Africa, but many will want to see action before buying into the promises."

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Kenya Star.

More Information

null in null

Africa

Section

GHANA-ACCRA-CHINESE LANGUAGE-COMPETITION

(250418) -- ACCRA, April 18, 2025 (Xinhua) -- A contestant sings a Chinese song during a competition to mark the Chinese Language Day...

Hardik Pandya is one of best all-rounders in world: Mark Boucher

New Delhi [India] April 18 (ANI): Former South Africa wicketkeeper-batter Mark Boucher is impressed with Mumbai Indians captain Hardik...

Sharjah shines as Guest of Honour at Rabat Book Fair

Sharjah [UAE], April 18 (ANI/WAM): In the presence of Prince Moulay Rachid of Morocco and Sheikha Bodour bint Sultan Al Qasimi, Chairperson...

Haryana Sports Minister Gaurav Gautam declares Global Indian Pravasi Kabaddi League open in Gurugram

Gurugram (Haryana) [India], April 18 (ANI): Haryana Sports Minister Gaurav Gautam on Friday inaugurated the first edition of Global...

Dubai Land Department signs 11 agreements at IPS 2025

Dubai [UAE], April 18 (ANI/WAM): Dubai Land Department (DLD) signed 11 agreements with diverse local and international entities. The...

Abu Dhabi to launch 'Silicon Valley for AI and Healthcare' Innovation Hub

Abu Dhabi [UAE], April 18 (ANI/WAM): Abu Dhabi Health Data Services (ADHDS), a cornerstone of M42's Digital Health Solutions (DHS)...

World

Section