Thursday 2 May 2013

Rand’s strengthening momentum has disappeared

Trade report 01/05/2013

The ZAR’s strengthening momentum has disappeared as it lost some ground against the USD despite a narrower than expected trade deficit. The reason for the ZAR losing ground is most probably related to commodities being on the defensive as the gold and platinum prices retreated.

The R7.8bn deficit for March 2013 was due to a 2.9% increase in exports from February and a 0.3% decrease in imports. The annual trade deficit for 2012 was R117.675bn compared with R16.885bn in 2011.

On Wednesday the US Federal Reserve (Fed) said that it would continue with its economic stimulus campaign, putting to bed rumours that the Fed was planning to do less. Efforts to spur growth and reduce unemployment are a Federal Reserve priority and for the first time the Fed explicitly mentioned the possibility of doing more in a policy statement.

To read the full report, visit the Currency Solutions website. Transferring funds out of South Africa/Money transfers into South Africa – Let one of our professional consultants at Currency Solutions assist you. To know more about how we can help you Contact Us.

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