South Africa’s inflation, currently below the 3%–6% target range, has reignited discussions about lowering the target to
align with global standards. The IMF has recently endorsed this move, citing potential long-term benefits.
The ZAR has shown resilience, supported by improved domestic sentiment under the GNU and hopes for economic
reforms. While it remains the top-performing emerging market currency year-to-date, global uncertainties – including
US protectionist policies and rising tensions in Ukraine – are pressuring emerging market currencies. Nonetheless, the
USD’s recent weakness offered some short-term relief to the ZAR.
The VIX, a key measure of market risk, is likely to receive more attention due to heightened global uncertainty ahead of
a second Trump presidency and what this means for US-Sino and US-Ukraine relations