Chinese credit report gives rand a boost
The rand advanced to its strongest level in more than three weeks against the dollar yesterday after China said new credit hit a record high last month, signalling the country would maintain its growth momentum. The rand has rebounded 4.3 percent since the Reserve Bank unexpectedly increased borrowing costs on January 29, as governor Gill Marcus said inflation was set to breach the 6 percent ceiling of its target range towards the middle of the year. A report tomorrow is expected to show inflation accelerated for a second month in January. “Commodity prices and commodity currencies should receive some support” after the Chinese lending report eased concerns that the economy was heading for a slowdown, Bruce Donald, a currency strategist at Standard Bank, said. – Bloomberg
Mboweni quits as AngloGold chair
Former Reserve Bank governor Tito Mboweni stood down as AngloGold Ashanti chairman yesterday, adding to speculation he may take up a senior post in the government after elections in May. Mboweni was elected to the ANC’s 80-member national executive committee in December 2012, signalling his return to mainstream politics. “He is a party heavyweight,” Pierre du Toit, a politics professor at the University of Stellenbosch, said. “I wouldn’t be surprised if he makes a go at a senior cabinet post. Whether he gets it or not is a different matter. There is big competition within the party for those posts.” Sipho Pityana, an AngloGold non-executive director for seven years, was elected unanimously by the board yesterday to replace Mboweni. – Bloomberg