Rand steadies as South Africa’s FATF greylist exit boosts investor confidence

THE rand held relatively steady over the past week, buoyed by South Africas long-anticipated removal from the Financial Action Task Force (FATF) greylist — a development widely seen as a vote of confidence in the country’s financial reforms.

- SIPHELELE DLUDLA

The local currency traded in a narrow range, hovering around R17.30 to the US dollar, after fluctuating between R17.22 to the US dollar on Monday, R17.46/$1 midweek, and closing at R17.26/$1 on Friday.

The movement mirrored broader volatility in the US dollar index, though the FATF announcement helped anchor sentiment in South Africa's favour.

FATF confirmed on Friday that South Africa “will no longer be subject to increased monitoring’, acknowledging that the country had successfully completed its reform commitments within the agreed timeframe.

However, the Treasury cautioned that delisting marks “the start of a broader process” rather than its conclusion, emphasising the need to sustain institutional reforms, strengthen enforcement, and deepen governance improvements.