The South African rand started the week steady despite fresh tariff risks and global uncertainty. On Monday, it traded around R17.36/$, R23.20/£ and R20.19/€ as commodities steadied and oil dipped to $63.58 a barrel. The JSE Top-40 slipped 0.6% and the 2035 bond yield rose to 9.065%, reflecting caution in local markets.
Kganyago: “Think again” About a “Weak, Volatile” Rand
SARB Governor Lesetja Kganyago told the Drakensberg Inclusive Growth Forum that the world has moved away from trade openness, and tariffs are back. Even so, he argued 2025 “has been a better year for emerging markets than many had feared,” with a stronger rand, lower domestic rates and improved terms of trade.
“When people tell you the rand is a weak and volatile currency, encourage them to think again,” he said, underscoring South Africa’s commitment to a flexible exchange rate that buffers shocks.
New Trade Barriers Raise Stakes for Industry
Tariffs and the South African rand intersect in the real economy. The EU is set to impose 50% duties on certain steel imports, a blow to local stainless-steel exporters. The industry has urged urgent action as the bloc remains South Africa’s second-largest iron and steel destination after China. Precious metals—about 17% of exports—offered support as gold extended an eight-week run and silver hovered near records
Business Signals: Government Fleets and Consumer Platforms
Automaker Hyundai is pushing deeper into government procurement, showcasing models to state buyers after moving roughly 500 vehicles into departments over the past year. Meanwhile, Uber’s local service quality came under pressure, with a spike in one-star customer reviews on HelloPeter
Policy Debate: Competition and Currency Reserves
Economist Dawie Roodt criticised the Competition Commission’s approach, arguing collaboration can, in cases, strengthen competition. Separately, Kganyago highlighted reserves above $70 billion and said if the rand turns “uncomfortably strong,” the Bank could add to reserves—another link between tariffs and the South African rand as policy makers balance stability with growth
