[LISTEN] Difficult days ahead with SA's local currency downgrade - economist

Economist Xhanti Payi says the latest S&P Global Ratings downgrade comes at a heavy price.

The ratings agency cut South Africa's local-currency debt score to junk on Friday, citing a further deterioration in the country’s economic outlook and public finances, sending the rand tumbling.

The downgrade comes after Finance Minister Malusi Gigaba shocked markets on 25 October by flagging sharply weaker growth expectations, a wider budget deficit and rising government debt.

Payi explains the large scale effect this will have.

People will start taking their money away and that actually puts pressure on the rand with some weakening and that has implications for inflation in the first place.

Xhanti Payi, economist and head of research at Nascence Advisory and Research

We will hear banks are also being downgraded, and then it costs more to borrow. So that comes at a heavy price.

Xhanti Payi, economist and head of research at Nascence Advisory and Research

These are difficult days.

Xhanti Payi, economist and head of research at Nascence Advisory and Research

Click on the link below to hear Payi's take on some of the changes that need to be made going forward....


This article first appeared on 702 : [LISTEN] Difficult days ahead with SA's local currency downgrade - economist


Recommended

by NEWSROOM AI
Read More
No certainty if strange stone originates from outside the solar system

No certainty if strange stone originates from outside the solar system

In 2013 researchers announced the 'Hypatia' stone found in the south-west of Egypt, was most certainly not from Earth.

[LISTEN] ANC's proposed land expropriation explained

[LISTEN] ANC's proposed land expropriation explained

The Institute of Race Relations explains the confusion around the proposed amendment to Section 25 and how this affects property.

State Capture inquiry could be 'never-ending' if broadened - Karima Brown

State Capture inquiry could be 'never-ending' if broadened - Karima Brown

Public Protector Busisiwe Mkhwebane has called for a broadening of the scope of the investigation into state capture.

Avoid your own personal downgrade in this junk status

Avoid your own personal downgrade in this junk status

Certified financial planner Paul Roelofse chats about preventing our personal downgrade & ways to manage our financial situation.

SA might be downgraded due to recent #CabinetReshuffle says economist

SA might be downgraded due to recent #CabinetReshuffle says economist

Dennis Dykes, a chief economist at Nedbank says ratings agencies do not, however, perceive South Africa in an unfavourable light.

 Ratings downgrade will affect new sexual offences courts - Lisa Vetten

Ratings downgrade will affect new sexual offences courts - Lisa Vetten

Re-establishing sexual offences courts could be scuppered by unskilled people and lack of resources, warns Vetten.

Popular articles
[LISTEN] Health tips for the festive season

[LISTEN] Health tips for the festive season

In the health feature, CEO of Proactive Health Solutions Dr Fundile Nyathi chats about some health issues the generally arise during the festive season.

'Cyril is the most popular president since Nelson Mandela'

'Cyril is the most popular president since Nelson Mandela'

Author Max de Preez weighs in on where SA would be if Jacob Zuma was still president and the impact of Ramaphosa now.

Kirstenbosch curator's widow thanks hospital's 'unsung heroes'

Kirstenbosch curator's widow thanks hospital's 'unsung heroes'

Kirstenbosch National Botanical Gardens curator Phillip Le Roux died on Wednesday after a horrific cycling accident.

Here is what to do if you're affected by driving licence backlog

Here is what to do if you're affected by driving licence backlog

The WC Traffic Department has made provisions to cater for motorists affected by the backlog with the issuing of driving licences.

Here's how to check your load shedding schedule in Cape Town

Here's how to check your load shedding schedule in Cape Town

Eskom has warned that more power cuts can be expected as maintenance continues over the next twelve months.

3 emergency numbers you should have on speed dial and how they work

3 emergency numbers you should have on speed dial and how they work

These are the emergency numbers you should have on your cellphone and this is what you must understand about how they work.