16.02.202616:02:31UTC+00South African Rand Hovers Around 2022-Highs

The South African rand hovered around 16 per USD, holding near its strongest level since June 2022, supported by improving domestic fundamentals and positive sentiment ahead of the 2026 Budget announcement later this month. The recent rally in commodity prices—most notably in gold, platinum, and silver—has positioned South Africa to secure a substantial windfall.

On the monetary policy front, the South African Reserve Bank left its repo rate unchanged at its January 29 meeting, signaling confidence that inflation remains contained within the revised target range. At the same time, President Ramaphosa has unveiled major reforms in the electricity sector and pledged military support to tackle organized crime, which he identified as a serious threat to economic growth.

Nonetheless, persistently high unemployment continues to weigh on South Africa’s long‑term growth prospects. Market participants now await the Q4 2025 unemployment and inflation data for a clearer view of the country’s economic outlook.