South Africa: Rand Shows Resilience.

The South African rand traded around 16.4 per USD, holding near its strongest level since April 20 and proving resilient amid domestic political risks. Traders appear to be taking a wait-and-see approach amid renewed scrutiny of President Cyril Ramaphosa through a parliamentary impeachment process. Parliament is moving ahead with a 31-member committee to investigate the Phala Phala matter, after a Constitutional Court ruling revived proceedings over alleged foreign currency theft at the President’s Limpopo farm in 2020. Ramaphosa has strongly denied any wrongdoing and said he will take the Section 89 panel’s report on review, firmly ruling out resignation. Although the possibility of impeachment remains, markets are pricing in the view that the economic reforms he has championed under the GNU would likely continue even in such a scenario. The South African Reserve Bank’s strong credibility has also helped stabilise investor expectations and limit currency volatility.