Rand Slumps as South Africa Seeks Higher Black Mine Ownership
- New regulations increase mininum black stake to 30% from 26%
- Proposals ‘waking up’ investors to risks: Nomura’s Montalto
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The rand weakened the most in more than two months as South Africa said local mines should be at least 30 percent owned by black people in an effort to redress economic imbalances caused by the apartheid system.
The currency fell as much as 2.1 percent against the dollar, the most since March 27, to be the biggest decliner among 31 major and emerging-market currencies tracked by Bloomberg. The rand was 2 percent lower at 12.8775 by 4:11 p.m. in Johannesburg. Local mining stocks slumped, while benchmark government bond yields rose by the most in almost a month.