Currency risks are a threat to South Africa’s plans to import LNG, as they make the fuel expensive and project financing difficult.
The exchange rate between the United States dollar and the South African rand has averaged 14.7 so far in 2016 – an increase of almost 15% on an annual basis. Tighter monetary policy by South Africa’s central bank has reversed some of the rand’s weakness against dollar, but the move is restricting the country’s growth. Meanwhile, allegations of government corruption are weighing on business confidence.
Log in or register for a free trial to continue reading this article
Not a subscriber?
To access our premium content, you or your organisation must have a paid subscription. Sign up for free trial access to demo this service. Alternatively, please call +44 (0)20 3004 6203 and one of our representatives would be happy to walk you through the service.Sign up