The Rand strengthened against the dollar last week Friday the 11th of April. The experts have cautioned that it remains vulnerable to developments in Washington’s global trade war and the potential for a split with in South Africa’s coalition government. The Rand was trading at 19.21 against the dollar, approximately 1.3 % stronger than Thursday’s closing level. Meanwhile, the dollar was down about 0.5% against a basket of currencies, which contributed to the Rand’s recovery.
Meanwhile, the dollar was down about 0.5% against a basket of currencies, which contributed to the rand’s recovery. Analysts noted that the rand will continue to be influenced by news regarding the future of South Africa’s generally business-friendly Government of National Unity. On Monday, 14 April 2025, the rand was trading at R19.06 to the dollar, R25.00 to the pound and R21.69 to the euro. Oil is trading lower at $64.56 a barrel. The province in crisis: The Auditor-General criticized the Eastern Cape government for poor accountability and vague reporting, which obscures a lack of performance and service delivery. Many departments reported unverified achievements, with some spending their entire budgets while meeting less than 50% of their targets. The AG highlighted unauthorized expenditure of R467.7 million, R2.7 billion in irregular expenditure, and R148 million in fruitless and wasteful spending.
The fact that the dollar is down could be due to side effects of the isolation Tariffs policy of US President Donald Trump speaks volumes about where the whole world is heading. However, it is the precariousness of the GNU that will determine how stable the value of the currency should be. Even the British Pound and the Euro are stronger than American Dollar. This is due to the fact that these currencies are supported by smaller nations that can’t afford tariffs. The Eastern Cape is one of the country’s most beautiful provinces and the actions of its provincial administration have left much to be desired. The fact that such a province is behind in being transparent and accountable is hugely embarrassing to South Africa as a whole. It goes with out saying that the rampant corruption experienced is the worse of its kind ever committed. The NPA should take a look.
The Hawkes need to investigate and political and public sector careers of those politicians in the Eastern Cape need to be ended. Meanwhile there will be reprieve to the oil prices.
However, subsequent to that, Donald Trump’s controversial trade tariffs played havoc with markets around the world. While the rand has weakened significantly, it has strengthened in recent days. In addition, the brent crude oil price has plummeted. Below, the latest projections as received by The South African website from the Central Energy Fund (CEF), effective Friday, 11 April. If the market conditions were to remain consistent for the remainder of the month – an unlikely scenario with the rand/dollar exchange rate fluctuating and the oil price ever changing – a decrease of 13 cents is expected for petrol 93 octane motorists and a decrease of 16 cents for 95 users. Meanwhile, diesel motorists would see something between a 36 and 37 cents per litre decrease. Finally, illuminating paraffin is expected to drop by 29 cents in price.
South African motorists can breathe a sigh of relief at the drop in petrol prices. However, it is uncertain how long this will last. The last thing any one needs is financial or political instability. The strength of the Rand can be attributed to stabilizing after Trump’s imposition of tariffs. South Africans need to brace themselves for any instability that may occur in the coming months depending on how the GNU maintains itself. The current fluctuation in petrol prices can be traced to Trump’s imposition of tariffs. In the long haul it is bound to become worse depending on how South Africa under President Cyril Ramaphosa will adapt. The current administration in Pretoria and its successors will be compelled to look else where for more reliable partners. As a member of the Southern African Development Community (SADC) and the African Union South Africa will have to realign itself with new interests.
Article written by:
Yacoob Cassim
Journalist at Radio Al Ansaar
