The rand plunged to a seven-week low yesterday amid rising concerns about the impact of South Africa’s power crisis on the country’s outlook.
The South African currency plummeted 0.4% to R17.61 against the US dollar around lunchtime, its lowest since mid-December, 2022 as a tangible solution to the energy crisis was still not in sight.
Investors are still concerned about the government’s plan to end load shedding as there is still no decision on declaring a national state of disaster on Eskom, following a Cabinet lekgotla.
Last month, the South African Reserve Bank slashed its 2023 growth forecast for South Africa to 0.3% from the previous 1.1%, due to extensive and damaging load shedding.