Rand gains on welcome news of first SA trade surplus in 17 years

JOHANNESBURG – The rand strengthened beyond R17 to the dollar on Thursday after South Africa’s current account of the balance of payments swung to its first surplus in 17 years. 

By 5pm yesterday the rand was at R16.97 to the dollar.

South Africa’s account rebounded from a deficit of R68.1 billion in the fourth quarter of 2019 to a surplus of R69.7bn in the first quarter of 2020.

This was the first current account surplus since the first quarter of 2003.

This moved the current account balance as a ratio of gross domestic product (GDP) from a 1.3 percent deficit in the fourth quarter of 2019 to a 1.3 percent surplus in the first quarter.