South Africa’s Rand Gains After China Unveils Economic Reforms

The rand gained for a fourth day after China unveiled the biggest economic reforms since the 1990s, buoying the outlook for South Africa’s exports to the world’s No. 2 economy.

Chinese leaders pledged to allow more private investment in state-controlled industries and expand farmers’ land rights. China is the biggest buyer of South African raw materials, accounting for about 12 percent of the nation’s exports, according to government data. South Africa’s central bank will leave its key repurchase rate unchanged on Nov. 21 to support growth, according to all 22 economists in a Bloomberg survey.

The Chinese plan “has been positive” for markets, Bruce Donald, a currency strategist at Standard Bank Group Ltd., said in e-mailed comments.

The rand appreciated 0.3 percent to 10.1271 per dollar by 10:51 a.m. in Johannesburg. Yields on bonds due December 2026 climbed one basis point, or 0.01 percentage point, to 8.11 percent.

South Africa’s inflation rate probably slowed to 5.7 percent in October from 6 percent the previous month, a report may show on Nov. 20, according to the median estimate of 23 analysts in a Bloomberg survey.

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To contact the editor responsible for this story: Vernon Wessels at

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