South Africa: Rand Hovers Around 2022-Highs.

The South African rand traded around 16 per USD, holding close to the highest since June 2022, bolstered by improving domestic fundamentals and upbeat sentiment ahead of the 2026 Budget announcement later in the month. The recent surge in commodity prices, particularly gold, platinum, and silver, has positioned South Africa to reap a significant windfall. On the monetary policy front, the South African Reserve Bank kept its repo rate unchanged at its January 29 meeting, reflecting confidence that inflation remains contained within the revised target framework. In the meantime, President Ramaphosa recently announced significant reforms in the electricity sector and pledged military support to combat organized crime, which he described as a pressing threat to economic growth. Persistently high unemployment also continues to constrain long-term growth potential. Traders now look to South Africa’s Q4 2025 unemployment rate and inflation data for a more complete picture of the economy.