16. EXCHANGE RATES TO SOUTH AFRICAN RAND


		As at 30 June 2024 Reviewed	As at 30 June 2023 Reviewed	31 December 2023 Audited	Six months ended 30 June 2024 Reviewed	Six months ended 30 June 2023 Reviewed	Financial year ended 31 December 2023 Audited

		Closing rates			Average rates

Foreign currency to South African rand:
United States dollar	US$	18.24	18.81	18.27	18.77	18.25	18.40
South African rand to foreign currency:
Nigerian naira1	NGN	82.53	40.21	49.65	74.94	26.63	32.58
Iranian rial2,3	IRR	23 521.17	19 960.07	21 372.32	21 600.63	18 571.08	19 379.16
Ghanaian cedi3	GHS	0.84	0.63	0.66	0.72	0.66	0.64
Cameroon Communauté Financière Africaine franc	XAF	33.56	31.94	32.45	32.33	33.32	32.84
Côte d’Ivoire Communauté Financière Africaine franc	CFA	33.56	31.94	32.45	32.33	33.32	32.87
Ugandan shilling	UGX	203.41	195.14	206.91	204.24	204.71	202.47
Sudanese pound3	SDG	99.01	31.33	45.60	62.86	32.36	34.14

¹	Nigerian Autonomous Foreign Exchange Market (NAFEM) rate for June 2024 and 31 December 2023.
²	SANA rate.
³	The financial results, positions and cash flows of foreign operations trading in hyperinflationary economies are translated as set out in note 6.

The Group’s functional and presentation currency is the rand. The strengthening of the closing rate of the rand against the functional currencies of the Group’s largest operations contributed to the decrease in consolidated assets and liabilities and the resulting foreign currency translation reserve decrease of R9 907 million (30 June 2023: R3 932 million increase, 31 December 2023: R13 533 million increase) for the period.

MTN Nigeria’s results for the six months ended 30 June 2024 were translated into the Group’s functional currency at a significant weaker naira exchange rate. This had a significant impact on the Group results, including reducing ZAR revenue, despite MTN Nigeria’s revenue increasing in local currency.

Net investment hedges
The Group hedges a designated portion of its dollar net assets in MTN (Dubai) Limited (MTN Dubai) for forex exposure arising between the US$ and ZAR as part of the Group’s risk management objectives. The Group designated external borrowings denominated in US$ held by MTN (Mauritius) Investments Limited with a value of R10.9 billion (30 June 2023: R17.5 billion, 31 December 2023: R10.9 billion). For the period of the hedge relationship, foreign exchange movements on these hedging instruments are recognised in OCI as part of the FCTR, offsetting the exchange differences recognised in OCI, arising on translation of the designated United States dollar net assets of MTN Dubai to ZAR. The cumulative foreign exchange movement recognised in OCI will only be reclassified to profit or loss upon loss of control of MTN Dubai.

To assess hedge effectiveness the Group performs hedge effectiveness testing by comparing the changes in the carrying amount of the debt that is attributable to a change in the spot rate with changes in the net assets designated in MTN Dubai. There was no hedge ineffectiveness recognised in profit or loss during the current or prior year.