South African Rental DollarsThe exchange rateOn Friday, the South African Rand depreciated the exchange rate against the US dollar at a rate of 1.8% in the record, closing the Times 19.32 Rand against the US $ 1, reaching a record low. Thro the week, the South African Rand against the US dollar fell by 4.7%, the largest weekly depreciation in 9 months.

The most direct reason may come from the United States. U.S. Ambassador to South Africa, Ruben Brigitte, recently accused South Africa of providing weapons to Russia and sparked diplomatic controversy. Bridget said at a press conference in Pretoria, South Africa, that the United States believed a Russian vessel loaded with weapons from South Africa returned to Russia in December last year.

Markets believe that the risks of South Africa actually cooperating with Russia should not be underestimated.If this allegation is eventually confirmed, the South African currency, the Rand, could be significantly devalued, putting South Africa, which has already faced a shortage of electricity, in a danger of rising inflation.

South Africa is China’s largest trading partner and largest export market in Africa. According to customs data, China-South bilateral trade volume reached 3,788,1 billion yuan in 2022, an increase of 8.5% in comparison. Of which, China exports to South Africa 1,615,3 billion yuan, an increase of 18.6% in comparison; imports from South Africa 2172,8 billion yuan, an increase of 2.0% in comparison. In view of this situation, foreign trade enterprises that have had recent trade with South Africa should keep an eye on the country’s exchange rate fluctuations, and stay in touch with customers, and beware of foreign exchange risk.

This decline in exchange rates has a significant impact on both South Africa’s economy and trade relations, and requires close attention from all parties to follow-up developments.