'As Mboweni started speaking the rand went weaker and weaker and weaker'
Markets hammered the rand on Wednesday, sending the South African currency down 2.4% (to R14.98 against the US dollar) after Finance Minister Tito Mboweni painted a grim picture of the country's rapidly deteriorating finances.
Wednesday’s rout was the worst one in more than a year.
Just as the Finance Minister started speaking, we saw the rand go weaker and weaker and weaker… it was a terrible day… the market was deeply displeased with the picture the Finance Minister painted… Are we in another downward spiral for the currency?Bruce Whitfield, The Money Show
Treasury expects the budget deficit at 5.9% of GDP this year – the highest in a decade and far above a previous forecast.
The Johannesburg Stock Exchange’s All-Share Index was up 0.29% to 55,872.60 points, buoyed by companies with earnings in foreign currencies, especially gold miners, and the expectation of an interest rate cut in the US.
We are in for a downward spiral… debt is spiralling… it’s horrendous… economic growth keeps on spiralling downwards…Andre Cilliers, Director - Treasury One
Listen to the interview in the audio below (and scroll down for more quotes from it).
We could get some reprieve from the US if they lower interest rates… it could temporarily hold the slide in the rand.Andre Cilliers, Director - Treasury One
It would be irresponsible if the Reserve Bank were considering any cuts [in interest rates] … no Christmas bonus!Andre Cilliers, Director - Treasury One
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
This article first appeared on 702 : 'As Mboweni started speaking the rand went weaker and weaker and weaker'
The South African Cabin Crew Association's Christopher Shabangu says the strike is not intended to shut airline down.Read More
Bruce Whitfield interviews senior Karatbars representatives, a financial advisor and someone who was invited to its conference.Read More
Launched in 2016, The Duchess has won numerous awards and successfully broke into the UK, Belgium and the Scandinavian countries.Read More
Did someone steal your phone? Contact your bank without hesitation warns consumer journalist Wendy Knowler.Read More
SAA is on its knees, cap in hand, asking taxpayers for R2 billion this month. Unions must be careful, warns Guy Leitch (SA Flyer).Read More
SAA acting CFO Deon Fredericks says arrangements will be made for customers affected by cancelled flights due to strike.Read More
Just because it is free does not mean there is no cost thoughRead More
EWN's Babalo Ndenze reports on SAA management's appearance before Parliament’s Standing Committee on Public Accounts.Read More
There were 56 boardroom deals valued at $67.6 billion tabled - a 44% increase from last year.Read More
Singh faces 18 charges of misconduct at SOE's Eskom and Transnet. EWN's Theto Mahlakoana reports from the Saica hearing.Read More