It is a global emerging market selloff - the highest on record - driven by a US-China trade disagreement.
Data from the Institute of International Finance has revealed that foreign investors have pulled around $5.5 billion out of emerging market economies since the Federal Reserve’s most recent interest rate hike.
According to data from the Johannesburg Stock Exchange (JSE), foreign investors sold R34.7 billion ($2.5 billion) worth of South African bonds between January and June this year. It is the highest sell-off on record, eclipsing what was seen during the 2008 global financial crisis and the dot-com crash of 2000/2001.
While confidence in South Africa’s growth prospects has improved since the election earlier this year of Cyril Ramaphosa, this has faded to some extent due to global economic conditions.
The rand has had a tough time, losing nearly 9 percent against the dollar this year.
