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How much the rand should be worth

The article from BusinessTech discusses the valuation of the South African Rand (ZAR) and its perceived undervaluation. It highlights that while the Rand has been one of the worst-performing currencies in 2024, there's an argument that it should be stronger based on several economic fundamentals. Economist Dawie Roodt suggests that the Rand's value is influenced by factors like South Africa's current account, which has been in surplus, indicating that the country is exporting more than it imports. However, the Rand's value is also affected by political uncertainty, corruption, and energy crises, which deter foreign investment. The article points out that if these issues were addressed, the Rand could potentially strengthen significantly, with some analysts suggesting it could be worth around R10 to the US dollar under better economic conditions. However, current market sentiments and external pressures like global economic trends and commodity prices also play a critical role in its valuation.

Read the Full BusinessTech Article at:
[ https://businesstech.co.za/news/finance/816948/how-much-the-rand-should-be-worth/ ]