Rand to strengthen in the medium term, says UBS Global Wealth Management
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UBS Global Wealth Management believes that the rand will strengthen in the near to medium term, with some domestic risk events having diminished, at least for now, and a more favourable external backdrop coming to bear.
The firm has however highlighted a few key risks to its positive outlook. In a note UBS states that on the local front a poor performance by the ANC in the general election, a further deterioration in public and state-owned enterprises' finances, and negative rating actions by ratings agencies are all potential stumbling blocks for the rand. While internationally concerns about global growth and obstacles to trade could weakened the local unit.
Tilmann Kolb from UBS Global Asset Management joined Business Day TV to discuss the company's outlook for the rand in more detail.
The firm has however highlighted a few key risks to its positive outlook. In a note UBS states that on the local front a poor performance by the ANC in the general election, a further deterioration in public and state-owned enterprises' finances, and negative rating actions by ratings agencies are all potential stumbling blocks for the rand. While internationally concerns about global growth and obstacles to trade could weakened the local unit.
Tilmann Kolb from UBS Global Asset Management joined Business Day TV to discuss the company's outlook for the rand in more detail.
