South Africa’s rand, stocks, and government bonds fell Monday after U.S. President Donald Trump announced plans to cut funding for the country.
The rand traded at 18.8975 against the U.S. dollar on early Monday, roughly 1% weaker than its closing value on Friday.
On Sunday, Trump alleged, without offering evidence, that “certain classes of people” in South Africa were being treated “very badly” and announced he would suspend aid until an investigation took place.
He also pointed to South Africa’s land expropriation, referring to legislation signed by President Cyril Ramaphosa a week prior, which permits the state to seize land in the public interest under specific conditions.
South Africa’s foreign ministry responded on Monday, stating that its expropriation act was not unusual.
It further expressed confidence that Trump’s advisors would take the investigative period to gain a full understanding of South Africa’s policies.
Over the weekend, Trump implemented broad tariffs on Canada, Mexico, and China, causing global currencies to plunge to multi-year lows.
