{"id":9903,"date":"2026-06-30T16:29:22","date_gmt":"2026-06-30T16:29:22","guid":{"rendered":"https:\/\/www.fintechpulse8.com\/?p=9903"},"modified":"2026-06-30T16:29:22","modified_gmt":"2026-06-30T16:29:22","slug":"rand-trading-surges-as-war-spawns-volatility-sarb-says","status":"publish","type":"post","link":"https:\/\/www.fintechpulse8.com\/?p=9903","title":{"rendered":"Rand trading surges as war spawns volatility, Sarb says"},"content":{"rendered":"

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Trading in the rand rose sharply in the first quarter as volatility induced by the Iran war pushed up average daily turnover by as much as 20%, according to the South African Reserve Bank.<\/p>\n

Currency transactions against the rand increased to $13.7 billion from $11.4 billion in the previous three months, while transactions in third currencies increased to $5.3 billion from $4.6 billion, the Sarb said in its Quarterly Bulletin published on Tuesday.<\/p>\n

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\u201cThe increase in turnover could be attributed to the volatility in the rand exchange rate due to the war in the Middle East,\u201d it said. \u201cThe increase in FX transactions against the rand in the first quarter of 2026 was driven by increased participation across all counterparties.\u201d<\/p>\n

The rand is often viewed as a proxy for other emerging-market currencies because the depth and liquidity of the South African foreign exchange market make it easier to execute trades for investors seeking to take a position on other EM assets.<\/p>\n

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While the currency initially weakened against the dollar after the US and Israel attacked Iran on February 28, it has since recovered some of that lost ground, despite the headwinds caused by higher energy costs for a nation reliant on oil imports. The real effective exchange rate of the rand has increased by 3.5% from March 2025 to March 2026, the central bank said.<\/p>\n\n\n\n\n
Other Highlights<\/th>\n<\/tr>\n
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  • South Africa recorded a primary budget surplus of R86.7 billion for the 2025\/26 fiscal year<\/li>\n
  • Foreign investors returned to South Africa\u2019s bond market after an initial sell-off triggered by the war in Iran, with demand fueled by improved fiscal outlook, the Reserve Bank said<\/li>\n
  • Non-residents sold R8.7 billion worth of South African bonds listed on the local Johannesburg Stock Exchange in the first quarter, versus net sales of R24.7 billion in fourth quarter of 2025<\/li>\n
  • Outflows primarily driven by record net sales of R56.2 billion in March 2026, triggered by risk-off sentiment amid the Iran war, energy supply disruptions, and concerns about inflationary pressures and interest rate hikes<\/li>\n
  • \u201cHowever, nonresidents renewed their participation in the domestic bond market, increasing their holdings by R37.1 billion in April and May amid relatively attractive domestic bond yields and the steadily improving fiscal outlook,\u201d the bank said<\/li>\n
  • Net purchases of bonds by non-residents reached 28.3 billion in the first five months of 2026, which was more than double the R11.5 billion\u2019 worth of bonds purchased in the corresponding period of 2025<\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

    \u00a9 2026 Bloomberg<\/p>\n<\/p><\/div>\n

    #Rand #trading #surges #war #spawns #volatility #Sarb<\/p>\n","protected":false},"excerpt":{"rendered":"

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