Chapter 1 – Exchange rate dynamics
Over the past four years, the general depreciating trend in the ZAR has been a two-edged sword, supporting ZAR-based prices for export industries but adding to input cost pressures across all subsectors. In the future, recent developments in domestic and external markets support sentiments for a strengthening trend into 2025. We believe that it can further strengthen to R17.50/USD by year-end and R17.25/USD by the first quarter of 2025.
Comparative USD ZAR projections
Figure 1
Source: Thomson Reuters, Absa Research 2024
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