# Time to Protect Against a Weaker Rand as Offshore Environment Seen Auguring Losses

> Strategists expected the rand to be driven increasingly by South African monetary policy and offshore factors, now that the budget had largely avoided a Moody's downgrade. The budget plan includes a 1% VAT rise and a forecast deficit fall to 3.5% of GDP by 2020/21. Analysts recommended hedging against a weaker rand at current levels.

- Date: 2018-02-22 · published 2018-02-22T12:00:00.000Z
- Category: macro · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/66789-time-to-protect-against-a-weaker-rand-as-offshore-environment-seen-auguring
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

Expected rand weakness would raise South African import costs for feed ingredients, but the effect on global grain and meal prices is small. Hedging advice mainly concerns currency exposure for local buyers.

## Read by commodity

- USDZAR: neutral

## Sources

- poundsterlinglive.com: https://www.poundsterlinglive.com/zar/8572-south-africa-to-avoid-downgrade-where-next-for-the-rand

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