# ZAR/USD: South Africa’s New Inflation Target Could Slow Rand’s Slide - Bloomberg

> South Africa formally adopted a 3% inflation target last month, a policy championed by central bank governor Lesetja Kganyago. The move helped pull 10-year bond yields to 2017 lows and put the rand on track for its strongest year against the dollar since 2009.

- Date: 2025-12-18 · published 2025-12-18T12:00:00.000Z
- Category: policy · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/21776-zar-usd-south-africa-s-new-inflation-target-could-slow-rand-s-slide-bloomberg
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

Lower inflation expectations and bond yields support the rand, which lowers rand-denominated import costs for South African feed buyers, though the new target could also limit the currency's further gains.

## Read by commodity

- USDZAR: bearish ▼

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2025-12-18/-zar-usd-south-africa-s-new-inflation-target-could-slow-rand-s-slide

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.