# Economists on why the rand is so undervalued right now – BusinessTech

> The Economist's Big Mac Index shows the rand to be undervalued by as much as 54.5%, with the currency trading near R16.70 to the dollar. Economists attribute the weakness to geopolitical tensions and global risk sentiment.

- Date: 2022-07-28 · published 2022-07-28T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/40791-economists-on-why-the-rand-is-so-undervalued-right-now-businesstech
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

Persistent rand weakness keeps South African import costs for feed and fertiliser elevated, though the index itself is a long-run valuation gauge rather than a near-term price driver.

## Sources

- businesstech.co.za: https://businesstech.co.za/news/finance/611402/economists-on-why-the-rand-is-so-undervalued-right-now/

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