Sa Rand Hits Historic Low Against The British Pound Sterling

The South African rand has hit an all-time low against the British pound sterling. As of April 3rd, 2025, one British pound costs a total of R24.73 .

This follows the South African National Assembly's approval of a controversial budget, which passed without backing from the DA or FF Plus-both key members of the Government of National Unity GNU, says the Daily Investor .

One of the primary triggers for the currencys slide was the National Assembly's approval of a controversial budget. The budget, which includes a proposed increase in value-added tax VAT, was passed without the support of two key members of the Government of National Unity-the Democratic Alliance DA and the Freedom Front Plus FF Plus.

This controversial budget decision relates to Finance Minister Enoch Godongwana's decision to hike VAT prices by 1 over the next two years. A decision that the DA deemed as a betrayal of the South African people

The DAs opposition to the recently passed budget , particularly the VAT increase, has strained its role in the Government of National Unity GNU. While not officially withdrawn, the party is reconsidering its position, raising concerns about political instability. Investors fear that a DA exit could weaken the GNU, hinder economic reforms, and further destabilise the rand.