The South African rand has had a bad month hit by a stronger dollar. This dynamic is set to continue and economists at ING believe that the USD/ZAR pair could soar as high as 17.00 in 2022.

Trade surpluses to fade

“The SARB admits that the near 6% of GDP current account surplus will dissolve within a year and growth will slow sharply – from 5.3% expected this year to just 1.7% next year.”

“With higher US rates and a stronger dollar, USD/ZAR could be trading at 16 or even 17 next year.”