# UPDATE 1-South African rand slips as financial watchdog flags risks | Kitco News

> The rand weakened to about 18.42 per dollar on 24 February 2023 after the Financial Action Task Force added South Africa to its grey list. The rand briefly hit a 2023 low of 18.485 before recovering somewhat, as the dollar index reached a seven-week high on strong US data.

- Date: 2023-02-24 · published 2023-02-24T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/37620-update-1-south-african-rand-slips-as-financial-watchdog-flags-risks-kitco-news
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Grey-listing is likely to raise banks' cross-border funding costs and transaction expenses, which feed into import costs for South African buyers. The currency effect is the main near-term price channel.

## Read by commodity

- DXY: bullish ▲
- USDZAR: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| DXY | 2017-09-27 | [South Africa's Rand Slips As U.S. Rate Hike Talk Cools Demand \| Naija247news](https://feedsoft.ai/events/69238-south-africa-s-rand-slips-as-u-s-rate-hike-talk-cools-demand-naija247news.md) | +0.5% | +1.5% |
| DXY | 2023-02-13 | [South African rand slides as Moody’s flags risks, dollar gains - Markets - Business Recorder](https://feedsoft.ai/events/37623-south-african-rand-slides-as-moody-s-flags-risks-dollar-gains-markets-business.md) | +0.3% | +0.6% |
| DXY | 2022-05-09 | [Chinese Yuan Slips To An 18-Month Low - Asia Financial News](https://feedsoft.ai/events/8317-chinese-yuan-slips-to-an-18-month-low-asia-financial-news.md) | +0.8% | -1.3% |
| DXY | 2019-09-26 | [UPDATE 1-South African rand steadies, stocks close higher - Africa Breaking News \| Top Stories \| Political \| Business \| Entertainment \| Sport](https://feedsoft.ai/events/57362-update-1-south-african-rand-steadies-stocks-close-higher-africa-breaking-news.md) | +0.3% | -1.3% |
| DXY | 2023-04-21 | [South African rand weaker as Fed rate bets support dollar \| CNBC Africa](https://feedsoft.ai/events/36686-south-african-rand-weaker-as-fed-rate-bets-support-dollar-cnbc-africa.md) | +0.3% | +0.8% |

## Sources

- kitco.com: https://www.kitco.com/news/off-the-wire/2023-02-24/update-1-south-african-rand-slips-financial-watchdog-flags-risks

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