Johannesburg, South Africa — 2026-02-03 South Africa’s rand remains undervalued despite strong rally, survey indicates. South Africa’s currency, the rand, has experienced a significant rally, reaching a nine-month high, but a recent survey suggests that it remains undervalued, according to independent observers.
The rand has appreciated by three percent this year and by 14 percent in 2025.
This year’s rally has been attributed to factors such as reform progress, strong metals prices, and international and domestic improvements, according to regional officials. Despite the rally, the survey of investors and economists indicates that the rand’s fair value is estimated at around 16-rand to the dollar, with some respondents placing it at 15-rand-64-cents.
This suggests that the rand is still undervalued, according to sources close to the matter.
The rand’s performance has historically been volatile, influenced by factors such as economic instability, political uncertainty, and changes in commodity prices. Its current trajectory is closely linked to global economic conditions and domestic economic policies, official statements indicate. Some sources suggest that the rand’s rally might not endure due to potential economic headwinds, such as global fiscal concerns and the US dollar’s potential weakness.
However, others highlight positive developments in South Africa, such as a ratings upgrade and removal from the FATF grey list, which have contributed to the rand’s recent strength. Further details regarding the survey methodology and the criteria used to determine the rand’s fair value were not immediately available.
The situation remains developing, and further details are expected.
Source: Africa.
*Additional reporting by ImNews | Sources consulted: 5*
