South Africa is close to concluding discussions on forming a new government, the African National Congress (ANC) said. The rand jumped.

“Almost done with GNU discussions, in the best interest of all South Africans,” ANC Secretary-General Fikile Mbalula said in a post on X. “It will be done as promised.”

Mbalula’s statement coincided with Bank of America strategists saying they’ve closed their bearish trade recommendation for the currency as they anticipate a coalition government will be formed by the ANC and the centrist Democratic Alliance.

The rand strengthened as much as 1.6% and traded 1.4% stronger at 18.2145 per dollar by 10:34 am in Johannesburg.