From Gains to Pains: The Rand’s Journey Through 2024

How the Rand Fared in 2024: A Year in Review

Rand vs. US Dollar The Rand slipped slightly against the US Dollar in 2024, losing 2.6% of its value. It started the year at R18.29 to the Dollar and ended at R18.78. On average, though, the Rand performed better than it seemed, with an annual improvement of 1.1% when looking at monthly trends. If you traded below the average rate of R18.33 to the Dollar, you got a good deal. Over the past decade, however, the Rand has typically weakened by about 4.4% each year.

Rand vs. Euro Against the Euro, the Rand had a good year, gaining 3.3%. It began 2024 at R20.24 per Euro and finished stronger at R19.61. The yearly average was R19.83, meaning the Rand gained a modest 1.2% when you look at monthly changes. Historically, the Rand tends to weaken by about 2.6% per year against the Euro.

Rand vs. British Pound The Rand’s performance against the Pound wasn’t as rosy, dipping by 1.4%. It opened the year at R23.30 and ended at R23.64. The average rate for the year was R23.42, with monthly data showing a small annual decline of 1.6%. Over the last five years, the Rand has weakened by an average of 4.3% annually against the Pound.

Rand vs. Australian Dollar The Rand shone brightest against the Australian Dollar in 2024, gaining 6.7%. It started at R12.45 and ended at R11.68 per Aussie Dollar. The average rate for the year was R12.12, and monthly trends showed a slight annual improvement of 0.6%.

US Dollar vs. Euro The Dollar had a strong year, gaining 6.7% against the Euro. It began 2024 at USD1.10 per Euro and ended at USD1.04. The yearly average rate was USD1.08, showing a steady climb.

Rand vs. Other Emerging Market Currencies Compared to other currencies from developing countries, the Rand did relatively well, losing 2.6% against the Dollar while the broader emerging market currency index dropped 5.8%. South Africa’s efforts to address power shortages and an improved credit rating helped the Rand stand out. However, challenges like infrastructure issues and global economic shifts still pose risks.

Looking Ahead While the Rand showed resilience in some areas, the lack of significant economic improvements and lower growth forecasts took their toll toward the end of the year. Experts believe 2025 could bring better economic performance, but rising imports might put pressure on the currency. For the Rand to gain lasting strength, South Africa will need to speed up economic reforms and benefit from a stronger global economy.

Keeping an eye on fair value and the bigger economic picture will be key to understanding where the Rand is headed next.

If you’d like to find out how your portfolio stacks up to these challenges, give me a shout and let’s have coffee.