Rand extends decline as SA unveils Eskom rescue plan

South Africa’s rand weakened, leading emerging-market currency declines against the dollar on Tuesday, as the government unveiled a rescue plan for Eskom. 

Read: SA unveils next steps to rescue Eskom

The rand fell 1% to 14.70 per dollar by 12:11 pm in Johannesburg. Yields on benchmark 2026 government bonds rose three basis points to 8.2%.

A policy paper released by Public Enterprises Minister Pravin Gordhan on Tuesday envisions Eskom relinquishing its almost century-old near-monopoly of the electricity industry. As a first step, its transmission unit will be hived off while remaining under the control of a state holding company, a move that will make it easier for private generators to supply the national grid.

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