Cost of Rand Protection Rises Before Key Budget Speech: Chart

The cost of buying protection against rand swings is rising before Finance Minister Pravin Gordhan’s key budget speech on Feb. 24. The rand’s one-month implied volatility against the dollar, based on prices of options contracts to buy or sell the currency, has climbed 232 basis points this month even as the rand strengthened 3.2 percent. Gordhan, 66, has said the government will do everything possible to ensure that the nation’s debt isn’t downgraded to junk.

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