Credit Suisse expect "USDZAR to trade in a.....>

RAND: Credit Suisse expect "USDZAR to trade in a wide range between 12.00 and

13.00 in the short run. Domestic catalysts such as early elections and land

reform are unlikely to change the sentiment towards the rand in a big way.

Further down the line, we remain structurally bullish on the currency and expect

outperformance against the EMFX complex."

- CS note that "although the near-term risks to USDZAR are on both sides, we are

still comfortable with the idea of recommending long-rand exposures in general.

Our rationale is based on the idea that the South African economy operates below

its potential leaving decent room for upside surprises, although we recognize

that these expectations are priced in to some extent."

- As a result CS "recommend trading the 12.00-13.00 range in USDZAR over the

near-term. At this point we feel more strongly about fading weakness than

selling USDZAR on a downward move. As a general bias, we like long-ZAR positions

against other EM high yielders. For example, for benchmark investors we think it

makes sense to hold an overweight exposure to the rand on the account of their

average exposure to the rest of the EM high-yielding complex."