Standing Pat, Central Bank Says Rand Drop Is Blip Due to Turkey
Large banknotes at the value of two hundred and one hundred South African Rand depicting former South African president Nelson Mandela are on display on July 13, 2018 in Pretoria, South Africa. PHILL MAGAKOE/AFP/Getty Images
A jump in South Africa’s interest-rate bets may be little more than a reflection of the turmoil in Turkey.
Forward-rate agreements used to speculate on interest rates, increased on Aug. 13 after the rand sagged—at one point dropping the most since the 2008 financial crisis—as Turkey’s crisis sapped demand for emerging-market assets.
