South Africa’s rand has had an exceptionally volatile year, almost reaching R20 to the dollar in May before strengthening to about R17.27 in late July and then weakening again to trade between R18 and about R19.30 to date. Most notable about the domestic currency’s weakness is that it has been weak on a relative basis compared with some of the other emerging market currencies and not just against the US dollar, which suggests that there are other forces at work.
It is difficult to assess what an expanded Brazil, Russia, India, China, and South Africa (BRICS) grouping will mean for South African trade fortunes and broader economy amid the shifting global power dynamics between North and South, East, and West. However, there are several advantages that could be harnessed, all going well, including improving access to funds, and fostering collaboration across the member countries in developing infrastructure and industrialising.
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