Bloomberg reported this week that major US banks including JPMorgan Chase and Bank of America are telling clients to short the rand against other major emerging market currencies.
They’re expecting the Pravingate selloff to repeat, triggered by President Jacob Zuma surviving a No Confidence vote or his former wife Nkosazana Dlamini-Zuma being named head of the ruling ANC in December.
Moving money offshore is an option, but one can also hedge by investing in JSE-listed rand hedges which generate much of their revenue in hard currency. Beware the Wall Street bears.
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