# Rand Sinks After South Africa Spells Out Burden of Saving Eskom

> The rand fell sharply after the South African government published a plan to rescue Eskom, the state power utility. The plan would split off Eskom's transmission unit and open generation to private suppliers, and bond yields rose as investors weighed the cost of the bailout.

- Date: 2019-11-01 · published 2019-11-01T12:00:00.000Z
- Category: macro · region South Africa · magnitude medium
- Page: https://feedsoft.ai/events/56868-rand-sinks-after-south-africa-spells-out-burden-of-saving-eskom
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

A weaker rand and higher sovereign borrowing costs raise the cost of imported feed inputs in South Africa. The rescue cost also points to continued fiscal strain.

## Read by commodity

- USDZAR: bullish ▲

## Sources

- bloomberg.com: https://www.bloomberg.com/news/articles/2019-10-30/rand-sinks-after-south-africa-spells-out-burden-of-saving-eskom

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