Rand steady despite Moody’s warning
Local currency is hardly changed at midday on Thursday, despite a warning by ratings agency Moody’s that the 2017-18 budget could represent increasing fiscal risks
The rand was steady at levels below R13/$ at midday on Thursday despite a warning by ratings agency Moody’s that the 2017-18 budget could represent increasing fiscal risks. The increasing risks relate to government guarantees for state-owned enterprises. "While government guarantees relative to GDP were projected to stabilise, their actual drawdowns were rising and represent increasing risks to the government’s fiscal position," Moody’s lead sovereign analyst Zuzana Brixiova said in a statement. However, Moody’s acknowledged the government’s commitment to continued fiscal consolidation. Amid challenging conditions, the 2017-18 budget set out fiscal consolidation targets consistent with commitments in the 2016 medium-term budget policy statement, including a gradual stabilising of the debt:GDP ratio, Moody’s said. At 11.40am the rand was at R12.9711 to the dollar from R12.9751. The rand had earlier firmed to R12.9052/$ in intraday trade on Finance Minister Pravin Gordhan’s prudent st...
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