Currencies

South Africa’s Rand Emerges as a Leading EM Currency First Time in Eight Years

  • South African currency among top EM performers this year
  • Reform measures bolster economy as bond inflows accelerate
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For the first time since 2016, South Africa‘s rand finds itself among the five best-performing emerging-market currencies of the year — and there may be more to come, according to analysts at Credit Agricole SA and Ashmore Group Plc.

A steep retreat in December saw the rand surrendering its year-to-date gain for a decline of about 2% in 2024 — a year in which just three emerging-market currencies advanced. That places it fifth after the Malaysian ringgit, Hong Kong dollar, Thai baht and Peruvian sol among 24 major developing-nation currencies tracked by Bloomberg.