South Africa: Rand best CEEMEA performer this week – Rabobank
|The South African rand was on track to end this week as the best performer amongst its CEEMEA peers after President Ramaphosa’s speech, Piort Matys from Rabobank reports. USD/ZAR is being exchanged at 14.8505 after falling this week.
Key quotes
“Ramaphosa reiterated his commitment to consolidate public finances by reducing spending and improving its composition. ‘Our debt is heading towards unsustainable levels, and spending is misdirected towards consumption and debt-servicing rather than infrastructure and productive activity’.
“Essentially, President Ramaphosa said exactly what investors would like to hear. And this, perhaps, is the issue – we have heard all that before and yet the economy is barely growing.”
“To avoid a downgrade to junk – and substantial capital outflows that would follow – the pace of economic reforms must accelerate markedly. Even a credible budget that FinMin Mboweni will reveal on February 26 may not prove enough.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.