JOHANNESBURG (Reuters) -South Africa’s rand, bonds and stocks were on the front foot in early trade on Monday, as domestically-focussed investors reflected on the country’s removal from the global financial crime watch list.
At 0716 GMT the rand traded at 17.2150 against the dollar, roughly up 0.2% on Friday’s close.
“The removal restores South Africa’s global financial credibility, easing cross-border business and boosting investor confidence,” said ETM Analytics in a research note.
Africa’s largest economy was added to the list in February 2023 after criticism of its systems to combat money laundering and terrorist financing.
“One should expect the ZAR to trade on the front foot at the start of this week, as overall risk assessments of the currency have improved,” said the note.
On the Johannesburg Stock Exchange, the Top-40 index was up 0.5% in early trade.
South Africa’s benchmark 2035 government bond was also stronger, as the yield fell two basis points to 8.865%
This week’s economic releases will feature Money supply, private sector credit data, trade and budget balance figures and producer inflation numbers.
(Reporting by Sfundo Parakozov;Editing by)
