Fitch had also previously upgraded South Africa's long-term foreign currency rating to BBB. These improved ratings have already assisted in reducing South Africa's cost of borrowing as seen in the recent government eurobond issue. Of all the recent economic developments, the behaviour of the rand has perhaps attracted the most attention.
After depreciating by 0,4 per cent during January 2003 on a weighted average basis, the rand appreciated by 8,2 per cent and 0,4 per cent respectively during February and March, resulting in an increase of 7,5 per cent from the end of December 2002 to the end of March 2003. This followed a 26 per cent appreciation for 2002 as a whole.