South Africa – What Is Fair Value For The Rand In A World Of Normalized Interest Rates?

Market Commentary, Market Insights

In this article, we will review the latest economic data for South Africa and discuss some of its implications as it relates to the outlook for the country’s financial assets, including the MSCI iShares South Africa exchange-traded fund (NYSEARCA:EZA). More importantly in the final part of this article, we will detail what we consider a reasonable downside target for the currency, based on the assumption that the global liquidity backdrop (specifically $ liquidity) will continue to tighten further over the next 12 to 18 months.

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