ZAR’s resilience is likely to be tested in the coming months – TDS
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Economists at TD Securities note that the South African Rand will likely face challenges that could negatively impact its current resilience.
“The ZAR’s resilience is likely to be tested in the coming months as local macroeconomic variables return to the old normal.”
“South Africa’s trade balance is undergoing a quick return to factory settings around flat which implies a negative current account balance. At best, South Africa will end the year with a small surplus, but we expect the C/A to drop to -1.8% of GDP in 2023 and to remain in deficit going forward.”
“We now expect USD/ZAR at 17.85 in Q1 2023 and 17.50 by year-end.”
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