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US elections grip the country in even more division as President Trump plans for court hearings to contest the outcome. In particular, in five main swing states. Across the world, non-Americans pop up on social media and talk about the elections. Actually, sometimes Americans become angry about it. They wonder why people from countries like South Africa become so invested in it.
US elections 2020 – President Ramaphosa congratulated Joe Biden
When the media called Joe Biden’s election win, South African President Cyril Ramaphosa sent in his congratulations. And, it not only refers to the Democrats but relates to the exchange rate for the South African Rand. Their currency plunged during the coronavirus and actually crossed the R20 to 1 figure at one stage. Now if you’re a South African earning in foreign currency, that makes the wallet flush. But a low exchange rate’s bad for the economy overall.
As news emerged that Joe Biden might win the election, the Rand started bounding up and finally made it to just over R15 to US$1. As the Trump appeals in the US elections might delay a final official election call, the Rand wavers daily. We noted that “Joe Biden won’t officially be the President-Elect until the votes are certified next month.” And South Africans understand this US election waiting period. But this time around, Business Insider notes that Trump’s previous trade and foreign policy announcements rocked the country many times.
https://twitter.com/Unathi_Kwaza/status/1329693342880452609
A Biden victory potentially bad news for the dollar
The outlet noted that in a way, a Biden victory’s perceived as “bad news for the dollar.” After all, he talked about things like “a large stimulus package.” And this could add to the “US government debt.” Possibly it might even dilute “the value of the dollar.” However, one analyst, Nolan Wapenaar, notes that at least Biden might bring a “more predictable” trade and foreign policy situation than Donald Trump.
In the long run, he predicts that this should help the South African Rand grow in strength and finally cut through that R15 to $1 barrier. And, that’s important, given the high rise in the cost of living in South Africa. Expatistant.com notes that a family of four needs an “estimated monthly income of R 36,706 in 2020. (currently $592.76 per week). And, that’s not for a very luxurious lifestyle. Especially, when you consider the “average worker gets paid R21,455 per month.” (currently $365 weekly). And that figure’s down from the same quarter last year.
The South African rand is already feeling the pressure from the US elections 🙆🏿♂️
— C_T_ZIN – ⚔️ (@C_T_zin_X) November 4, 2020
US election not all about money in South Africa
Of course, it’s not all about money. As South Africans watched the rise of BLM and Antifa in America, it re-sparked old racial resentments. Right now, the Rainbow Nation’s nothing like a glowing beauty when it comes to inter-racial tension. With a growing attitude that all whites are radical racists, many of them fear for their future. Thus, some of them hope for a Trump win to help safeguard against their uncertainties.