EZA - The Post-Pandemic Global Recovery As A Tailwind For The South African Rand

• Despite a subdued macro stand, the rand continues to strengthen against the US dollar and euro.
• The main factors behind its appreciation are the growing prices for mineral commodities, the recovery of world trade, coupled with China's continued economic expansion.
• We assume the rand will demonstrate a more solid rise against the euro backed by a slower economic recovery in the euro area than in the US and China.
• During H1 2021, we expect the EUR/ZAR pair to decline at least to 17.00.

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