Rand retains momentum on the back of the US election

By Dhivana Rajgopaul 24m in the past

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JOHANNESBURG – The South African rand retained optimistic momentum on the back of exterior components –a Biden presidency – as US elections continued to dominate world headlines.

In native information, directors for state service SAA indicated that debt to plane lessors and “some creditors” should not lined by the R10.5bn ($665m) bailout (which solely lined “initial commitments”) specified by the ‘mini-budget’ offered in October, spurring issues that the embattled parastatal will knock on authorities’s door for yet one more hand-out in the quick time period.

Reuters quoted directors as warning that round R1.7bn is owed to lessors and R600m to collectors “from before [SAA] went into administration” (nearly one 12 months in the past).

Reuters additional cited Kgathatso Tlhakudi, director-general of the ministry accountable for SAA, as stating that authorities “would pay the amounts to lessors and longstanding creditors but that it was still working on a solution.”

This got here as Public Enterprises Minister Pravin Gordhan introduced this week that “the final purpose is to take away the burden … from our shoulders” as government is contemplating partnership deals with potential investors; this process will however be hindered by a burden of unpaid debt. SAA failed to return profit since 2011.

The local unit traded firmer overnight. Expected range today R15.30/$ – R15.60/$.

South African bourse

The JSE All Share (0.88 percent) ended higher on Friday led by gains in large technology (+3.54 percent) stocks. In the overall emerging market sphere, the MSCI Emerging Market Index (+1.26 percent) traded stronger.

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