The Rand held steady in early trade this Friday as South Africa (SA) awaited the outcome of its Financial Action Task Force (FATF) review, with markets largely pricing in that it will be removed from the watchdog’s “grey list” of countries under increased scrutiny.

Africa’s largest economy was added to the list in February 2023 after criticism of its systems to stop money laundering and terrorist financing.

At 10:43 CAT the Rand traded at 17.31 against the Dollar, little changed from Thursday’s close.

“Although it is not a foregone conclusion that SA will exit the grey list, optimism runs high with the authorities clearing virtually all the points on the checklist,” ETM Analytics said in a research note.

The note added that a positive outcome would help keep the local currency on the front foot heading into the weekend.

The Dollar last traded flat against a basket of currencies as traders eyed a key United States inflation report due later in the day, which has been delayed due to the government shutdown.

On the Johannesburg Stock Exchange, the Top-40 index was last down 0.3%.

SA’s benchmark 2035 government bond was slightly stronger in early deals, as the yield fell one basis point to 8.925%.

–Reuters–