TUESDAY, 12.30PM
The rand fell to a five-month low against the US dollar on Monday as banks stockpiled dollars ahead of today’s relaxation of foreign exchange controls.
The rand traded between R4,528 and R4,531 to the dollar on local markets, its lowest level since February 5.
However, despite the tribulations of the currency, financial markets remained generally upbeat, with traders sanguine the Reserve Bank has built up sufficient reserves to deal with the estimated R3-billion to R5-billion capital outflows expected to follow the lifting of forex regulations. As a result, the markets are looking beyond the easing of capital controls to an expected interest rate cut, possibly in September.
BUSINESS BRIEFS
REGIONAL RESOURCES SUSPENDED THE Johannesburg Stock Exchange has suspended Regional Resources’ listing after the company failed to submit its provisional annual results. The suspensiuon was to take effect immediately, pending a meeting of the JSE general committee.
TRANSPARENCY FOR SA The international anti-corruption group Transparency International has launched a South African chapter, the non-governmental organsation said on Monday. The group, which operates in more than 60 countries, will establish a task group to promote transparency and accountability in all sectors of society.