Presidential inauguration | South African Rand soars to year high

JOHANNESBURG - Wednesday, the South African rand soared to its highest level in almost a year, trading at under R18 to the dollar.

WATCH: Markets' reaction to Zimbabwe's gold-backed currency

The currency's surge coincides with South Africa's progress towards establishing an official Government of National Unity.

The strengthening of the rand signals potential economic optimism, but what does this mean for the broader economy?

And how are the markets and rating agencies perceiving South Africa amid these developments?

Economist Azar Jammine discussed this with eNCA.