The oil price, commodity prices and the trade deficit.
South Africa has benefitted hugely from the decline in the oil price and may see a narrowing in its trade deficit over the short term, which will support the rand.
Lower commodity prices may, however, affect exports and offset the effects of the lower oil price over the longer term, economists told Moneyweb.
Mike Schüssler, chief economist at Economists.co.za, says petroleum products represent about 30% of the country’s imports. Since June the price has declined by about 42%, which has led to net savings on imports of about R60 billion over the same period.