Bianca Botes, Corporate Treasury Management, Peregrine Treasury Solutions
All eyes will remain on the local political landscape to determine whether or not Moody’s will downgrade South Africa. This comes after S&P downgraded South Africa on Friday evening, while Moody’s placed South Africa under downgrade review and indicating that the December conference will set the tone for their decision.
Soon after the downgrade the rand weakened to R14.15, but gained some ground leading to Monday, trading at R14.07.
Today will be the first trading day post the downgrade and volatility and downward pressure on the rand can be expected.