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Kganyago: Political turmoil takes toll on undervalued rand

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Johannesburg - The rand is currently undervalued and fluctuations in the currency are partly driven by political turmoil, Reserve Bank governor Lesetja Kganyago said.

“At the moment we could say that there is undervaluation of the rand,” Kganyago said in an interview with Bloomberg TV’s Jonathan Ferro, Alix Steel and David Westin in New York on Wednesday. “By how much we don’t know because there are so many moving parts.”

While the rand has gained 13% against the dollar since the start of the year, after losing 25% of its value in 2015, it was the most volatile among 31 major and emerging-market currencies tracked by Bloomberg during the last six months.

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