Latest news with #R18.82
IOL News
12-05-2025
- Business
- IOL News
Rand's remarkable recovery: How US-China trade talks are boosting South Africa's currency
Following a temporary dip due to geopolitical tensions, the rand has rebounded Image: Picture: Henk Kruger/Independent Newspapers South Africa's local currency, long known as one of the most volatile in the world, is on its longest winning streak this year, buoyed by positive signals of a US deal with China that could benefit exports from this country to China. As of Monday early afternoon, the rand was trading at R18.30 after having started the morning off at R18.21. This, based on Morningstar data, is among its best levels this month after it went as low as R18.19 last Tuesday. At the beginning of the year, the currency was at R18.82 and saw a nasty spike around April 8, when it shot up to R19.76 on the back of US Donald Trump's tariff announcement. On Friday, Wichard Cilliers, director and head of market risk at TreasuryONE, said the currency was on its strongest winning streak this year, boosted by expectations that US-China trade talks could benefit global trade and South Africa, whose economy is heavily reliant on exports to China. Investec chief economist, Annabel Bishop on Monday, noted that the currency was, in fact, 'more settled recently,' with the financial institution expecting it to reach as low as R18 to the dollar for the three months to end-June. Bishop noted that the dollar recouped some strength on the back of weekend trade talks between the world's two superpowers. Yet, she cautioned, it could still see volatility. 'Markets have benefited from the US and China reaching a trade deal over the weekend, with reciprocal tariffs reported to fall by 115%, and a 90 day pause on the recent new tariffs, with room for further negotiations,' said Bishop. Trump highlighted the meetings as a 'total reset' in US China trade relations, with other officials noting 'a great deal of productivity' and that 'it's important to understand how quickly we were able to come to an agreement,' Bishop said in a note. Cilliers, however, noted that more details on the trade talks would likely still emerge. Nolan Wapenaar, co-chief investment officer at Anchor Capital, told IOL that terms of trade have turned positive for South Africa as the cost of oil comes down and the value of gold increases. 'As long as this persists, the rand will trade with a positive overhang,' he said. This comes off the back of 'significant weakness in the VAT own goal and the Trump tariffs,' Wapenaar said. 'It appears, for now, that the risks are receding on both fronts. Therefore, we expect some recovery of the early April weakness,' Wapenaar said. These factors, along with South Africa's more positive international trading position, means that the local currency could strengthen toward the high R17s against the dollar. Bishop, however, said that the local currency will be dependent on international events. 'The improvement in market expectations now over global and US economic growth has added to the rand's recent strength, as risk aversion has dropped from elevated levels in earlier weeks, although risks remain to the downside,' Bishop said. IOL
IOL News
22-04-2025
- Business
- IOL News
New owners lined up for Shell petrol stations in South Africa
Abu Dhabi National Oil Co. and Swiss commodities trading firm Gunvor are among companies that have been shortlisted to buy Shell Plc's downstream assets in South Africa, according to various news reports over the weekend. The two companies are strong contenders for the assets that are valued at about $1 billion (R18.82 billion), the reports said, citing people, who asked not to be identified, as the information was private. Previous potential bidders including Trafigura's Puma Energy, Sasol and PetroSA are no longer in the running, the reports said. 'While Adnoc Distribution regularly reviews opportunities for domestic and international growth, we don't comment on market speculation,' Adnoc's fuel retail unit said. Shell has been looking to offload the assets, which include about 600 fuel stations and trading operations in Africa's biggest economy, as part of a broader strategy to focus on regions and businesses that offer higher returns. The assets are attractive for trading firms since they ensure demand for fuels that they can then supply. Adnoc and other Middle East oil companies such as Saudi Aramco have been expanding their trading arms as they look to break into new markets. Talks were continuing and there was no certainty there would be a final sale, the reports said. A deal would give the buyer about 10% of South Africa's fuel stations. The market in the country has changed significantly in recent years with trader Glencore Plc acquiring Chevron Corp.'s Caltex-branded stations a few years back. Ttrader Vitol Group's Vivo Energy last year bought Engen, the African nation's largest petrol station chain.
