Rumors of land reform are making the South African Rand plummet

Photo Cred: SA People. South African Rand value is plummeting amidst land reform implementation

The South African rand lost more than 3% on Wednesday due to reservations about the land reform plan as well as a Moody’s warning about the fiscal deficit.

According to TreasuryONE, “The rand is under massive pressure on renewed speculation regarding land reform and the implementations thereof. In an already risk-averse market, this only adds to the negative sentiment.”

Tuesday the Rand also took a steep fall. This was within minutes of an announcement from Parliament that they had passed a motion which will begin the process of land expropriation without compensation.

Upon President Cyril Ramaphosa’s inauguration in February 2018, he confirmed the ANC has decided to seize land without compensation in order to expedite land reform. He also reassured South Africa that he would do it in a responsible manner. One that wouldn’t leave the economy in shambles, or disrupt security, agriculture, and food production.

The Democratic Alliance objected to this, stating concern that this would scare off potential investors in South Africa as “property rights would be undermined.”

Wedneday at 3pm, the Rand is valued at 14.61 ZAR to 1 USD. This is a major drop in value from February when the Rand was valued as high as 11.55 ZAR to 1 USD. This is almost a 20 percent decline in value.

Instagram contests by Rewards Fuel
  1. ANTHONY SUBLETT 4 months ago

    This will be interesting, land expropriation without compensation. It’s going to be some really pissed of people there. I will have to keep a close eye on this story!!

  2. Slohand 4 months ago

    Oh no. I’d move to New Zealand.

  3. steven 4 months ago

    You won’t be able to buy a house.

  4. Anonymous 4 months ago

    Rand will just get worse and worse.

  5. Rob Smith 4 months ago

    Rand will just get worse and worse. This is a crisis in ZAfrika.

  6. Rob Smith 4 months ago

    the anonymoous was me. I wastn signed in when I posted comment. u may want ot delete it.

Leave a Reply

In the news
Load More

%d bloggers like this: