A majority of South African treasurers wary of rand volatility

Nov 8th 2013 | Middle East and Africa
  • 60% of South African treasurers think the rand belongs in the 'fragile five' currencies.
  • 59% believe the rand will depreciate between 5-15% against the US dollar in the next year.

08 NOVEMBER, JOHANNESBURG - A majority of senior treasury and finance professionals in South Africa (60%) would class the rand among the 'fragile five' currencies, alongside those from India, Turkey, Indonesia and Brazil.

This was the key finding of the "Treasury Verdict" session taken by a live audience poll of senior treasury and finance professionals at EuroFinance's 8th annual conference on Treasury, Risk and Cash Management in Southern Africa, held in Johannesburg.

Almost the identical number of South African treasurers (59%) believe that, over the coming year, the rand will depreciate by between 5% and 15% against the US dollar. By contrast, 21% think it will appreciate by 5-15%, and a further 18% say it will remain about the same.

Katharine Morton, EuroFinance's Editor Director, says: "Clearly there are issues with the rand that treasurers in South Africa have identified. It is a currency people will be buying when looking at emerging market risk, while its performance is also heavily dependent on the US dollar. On the bright side, South African treasurers seem to have accepted rand volatility is something that can be managed, as 58% are more confident about their business' prospects in the next year."

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