Rand weakens as Eskom blackouts continue

The rand is edging closer to the R18 mark against the US dollar.

At 8am,  the local currency was trading at R17.68.

This comes as the country continues to grapple with an energy crisis. On Sunday, Eskom ramped up its rotational power cuts to stage 6.

This has since been lowered to stage 5 rolling blackouts from midnight Monday.

The power utility says the power cuts are necessary in order to keep the lights on.

The power cuts however are detrimental for the country’s economy.

Recent data from Stats SA shows the negative effect of power cuts on the economy.

South Africa’s GDP recorded a 0.7 contraction in the second quarter. And, economists predict that the country could also record negative growth in the third quarter.

At the same time, on Thursday, the Reserve Bank will table the decision of its monetary policy committee on the country’s interest rate.

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Source: SABC News (sabcnews.com)