Pound South African Rand (GBP/ZAR) Exchange Rate Slides as PM Accused of ‘Chickening Out’
The Pound Sterling South African Rand (GBP/ZAR) exchange rate fell by around 0.8% this morning, and the pairing is currently trading at an inter-bank rate of R19.0376.
The Prime Minister held crisis meetings with her fellow Conservative MPs on Sunday afternoon as she made further attempts to convince them to support her Brexit withdrawal agreement.
One of the MPs present at May’s crisis meetings, Boris Johnson, said that the government has ‘chickened out’ of delivering Brexit.
He also added that May needed to set out ‘convincing proofs’ to show that the next phase of negotiations would be different.
Writing in the Telegraph, Johnson noted:
‘It is time for the PM to channel the spirit of Moses in Exodus, and say to Pharaoh in Brussels – let my people go.’
South African Rand (ZAR) Rises despite Fears of Global Slowdown
The South African Rand (ZAR) rose against the Pound (GBP) on Monday despite fears of a global recession.
Fears of a slowdown in global economic growth saw the Rand retreat against other major currencies at the start of this week.
There were further concerns over whether South Africa would be hit by another technical recession and if it would face a downgrade from ratings agency Moody’s at the end of the week.
However, Brexit pessimism weighed on Sterling, preventing the UK currency from taking advantage of the weakness in the Rand.
Pound South African Rand Outlook: Will the GBP/ZAR Exchange Rate Rise on Brexit Optimism?
Later in the day, Parliament will debate an amendable motion on Brexit proposed by Sir Oliver Letwin, which could cause the Pound (GBP) to rise against the South African Rand (ZAR).
If this amendment is passed it would provide Parliament with time to debate various options on how to proceed this Wednesday, which could buoy Sterling.
As there is an absence of economic data coming from the UK at the start of this week’ session, it is likely Brexit will remain the main catalyst for movement in the pairing.
While the date of the third ‘meaningful vote’ still remains uncertain, reports suggest that the Prime Minister will bring it before the House of Commons on either Tuesday or Wednesday.
If there are indications that the Theresa May will be able to get her fellow MPs to rally around her deal, the Pound South African Rand (GBP/ZAR) exchange rate could rally.