The South African rand traded steadily on Thursday, October 24, as investors closely watched the Financial Action Task Force (FATF) decision on whether South Africa will be removed from its grey list of countries under increased monitoring for deficiencies in anti-money-laundering and counter-terrorist financing controls.
The local currency hovered around ZAR 17.31 to the US dollar, showing little movement as traders adopted a cautious stance ahead of the FATF’s announcement, expected at the end of its plenary meeting, which runs from October 22 to 24, 2025.
South Africa was added to the FATF grey list in February 2023, a move that increased the country’s risk perception among global investors. The classification has been linked to reduced foreign investment and higher borrowing costs, as financial institutions imposed stricter compliance checks on South African transactions.
Economists say that being removed from the grey list would significantly boost investor confidence and improve the country’s financial credibility. “A positive FATF decision could enhance capital inflows, strengthen the rand, and lower the cost of doing business for South African firms,” analysts at RMB said.
Despite the anticipation, market reaction remained muted as investors awaited clarity from the FATF plenary. Analysts noted that while delisting from the grey list might not lead to immediate capital surges, it would mark a turning point for the country’s financial reputation and long-term economic outlook.
The FATF decision comes amid broader economic challenges, including slow growth, persistent power shortages, and inflationary pressures. However, recent government reforms aimed at tightening anti-money-laundering frameworks and enhancing regulatory transparency have raised optimism among global market watchers.
Financial experts predict that a favourable verdict could see the South African rand strengthen further, as global investors view the development as a signal of renewed confidence in the country’s financial governance.
The FATF verdict is expected to be announced later this week.
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