By Jason Mannet

JOHANNESBURG (XiarraMedia) -The South African rand gained in early trade on Wednesday, as investors braced for a day headlined by the Federal Reserve's decision and an easing of U.S.-China trade tensions. At 0638 GMT, the rand traded at 17.1350 against the dollar, up about 0.1% from its Tuesday close. "The ZAR put in a strong performance from yesterday afternoon. It is higher against all the majors, even with the gold price staying below $4,000.00. The main reasons is that the U.S are almost certain to cut rates tonight," said Adam Phillips, treasury specialist at Umkhulu Treasury. Economists have said the U.S. Federal Reserve is poised to reduce interest rates by 25 basis points at its meeting tonight. Phillips added that operators are also looking ahead to U.S President Donald Trump's meeting with Chinese President Xi Jinping tomorrow which could influence sentiment. Domestically-focused traders looked at money supply and private sector credit data which came out at 0600 GMT today. South Africa's benchmark 2035 government bond was firmer in early deals, as the yield fell 1.5 basis points to 8.87%.

By Walter Denmon

JOHANNESBURG, Oct 24 (Reuters) - Sub-Saharan Africa's largest economies, South Africa and Nigeria, have been removed from a global watchdog's list of countries subject to increased monitoring for illicit money flows. The Paris-based Financial Action Task Force (FATF) made the announcement at the end of a plenary meeting on Friday, also removing commodity-rich Mozambique and Burkina Faso from its 'grey list'. South Africa and Nigeria were added to the FATF's list of countries under special scrutiny in 2023, while Mozambique has been there since 2022. Burkina Faso was added in 2021. A POSITIVE STORY FOR AFRICA The FATF said South Africa had sharpened tools to detect money laundering and terrorist financing, Nigeria had stronger inter-agency coordination, Mozambique had improved financial intelligence sharing and Burkina Faso had enhanced oversight of financial institutions and gatekeepers. "With each plenary we seek to make the world's defence against criminals stronger, and we have made a number of updates on our grey list," Elisa de Anda Madrazo, president of the FATF, told a press conference. "And this plenary has been very positive, a positive story for the continent of Africa," she said. South Africa's government said FATF's decision was a major achievement but that there was still work to be done to strengthen key institutions. Nigeria said the decision reinforced confidence in its economy. BOOSTING CAPITAL FLOWS, LOWERING FUNDING COSTS Analysts say getting off the list could make it easier for capital to enter the four African countries. It could also benefit companies and households in those countries by lowering funding costs. The International Monetary Fund has estimated that being on the list reduces foreign capital inflows by approximately 7.6% of gross domestic product. "Corporates and individuals will face less friction in cross-border payments once key jurisdictions mirror the FATF decision," said Vincent Gaudel, a financial crime compliance expert at LexisNexis Risk Solutions. "Banks will expand correspondent services, and trade-finance operations will run more smoothly." For South Africa, "the delisting provides a modest tailwind for sentiment and risk premia," Bastian Teichgreeber, chief investment officer at Prescient Investment Management, said. FATF WELCOMES IRAN ENGAGEMENT BUT SAYS MORE ACTION NEEDED The FATF on Friday also published an updated statement on Iran, which has been on its "black list" since 2020 after a period on the grey list. It acknowledged Iran's re-engagement but said it had failed to address the majority of its action plan since 2016.