The rand on Thursday took a hit immediately after the Department of Health confirmed that the first case of the COVID-19 coronavirus has been in South Africa.
A 38-year-old man tested positive for the (COVID-19) virus in KwaZulu-Natal. The man recently travelled to Italy and has been in self-isolation since.
The local currency weakened by as much as 1.4% to R15.46 against the dollar, R17.30 against the euro and R19.99 against the pound.
The local currency weakened by as much as 1.4% to R15.46 against the dollar, R17.30 against the euro and R19.99 against the pound.
Bianca Botes, Treasury Partner at Peregrine Treasury Solutions, said: “The markets are on edge, with many questioning the ability of government to deal with a breakout in South Africa efficiently.”
The confirmation of the virus that has killed more than 3000 across the globe, mainly in China comes just a day after the International Monetary and Financial Committee (IMFC) held a teleconference call by Governor of the South African Reserve Bank Lesetja Kganyago and Managing Director of the International Monetary Fund Kristalina Georgie to discuss the impact of the virus on global markets.
The IMF has been urged to use all its available financing instruments to help member countries in need. South Africa is one of the 189 member states of the Washington-based lender of last resort.
By Kabelo Khumalo
