# Rand’s world-beating rally masks SA’s fiscal risks - Moneyweb

> The rand has gained about 5% against the dollar in February, the strongest performance among more than 140 currencies tracked by Bloomberg. The rally has been driven by a weaker dollar, US stimulus expectations and a global search for yield. Analysts warn that traders are overlooking South Africa's fiscal problems, including rising government debt and state-owned enterprise risks.

- Date: 2021-02-15 · published 2021-02-15T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/48933-rand-s-world-beating-rally-masks-sa-s-fiscal-risks-moneyweb
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

A strong rand lowers the local-currency cost of imported feed ingredients, but a sharp reversal driven by fiscal concerns could raise those costs quickly. The story is mainly about currency risk rather than physical feed supply.

## Sources

- moneyweb.co.za: https://www.moneyweb.co.za/news/south-africa/rands-world-beating-rally-masks-sas-fiscal-risks/

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