Dollar bonds of South Africa dropped by ~3% across the curve on Friday but have reversed losses since then. This comes after the US Ambassador to South Africa alleged that the country supplied ammunition to Russia. South Africa has taken a neutral stance on Russia’s invasion of Ukraine. Following this, the African nation’s dollar bonds fell by over 3%.
However, the South African Finance Minister Enoch Godongwana said his country had resolved the row with the US and that they are unlikely to face any repercussions. Also, the Department of International Relations and Cooperation (DIRCO) said that the US Ambassador admitted to having crossed the line and apologized to the government and the people of South Africa.
South Africa’s dollar bonds due 2028-2032 are trading at 87-91 cents on the dollar.