The rand steadied on Tuesday morning, but its short-term outlook remained uncertain, given the potential event risks on the horizon. SA faces the real danger of losing its crucial local-currency debt investment grade status by next week, when Moody’s and S&P Global Ratings are scheduled to review their ratings on the country. The rand and local bonds could be the immediate casualties if the country’s debt is downgraded. But the decisions also carry long-term consequences in terms of low business and consumer confidence, which puts further pressure on the economy. The ratings review comes at the time when the country’s finances appear to be stretched to limit, a situation complicated by local politics. The Treasury’s long-time budget head Michael Sachs has resigned, reportedly due to interference from President Jacob Zuma’s office over the budgeting process. "With our credibility already hanging by a thread, investors are unlikely to support local financial assets unless the moderate...
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