In a study published last week, the Fitch credit rating agency has warned the ANC government, which is still reluctant to consider public sector salary demands for the next three-year term, over it’s inability to exercise control over spending, which could lead to further budget problems.
Fitch Rating Agency Warns ANC Regime over Uncontrolled Spending and Unproductive Public Sector Salaries!
Fitch Rating Agency Warns ANC Regime over Uncontrolled Spending and Unproductive Public Sector Salaries!
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In a study published last week, the Fitch credit rating agency has warned the ANC government, which is still reluctant to consider public sector salary demands for the next three-year term, over it’s inability to exercise control over spending, which could lead to further budget problems.
The ratings agency pointed out that the compensation paid to public sector workers, which makes up a massive 35% of the workforce, will not yield good results, and furthermore, any salary increases and adjustments could be detrimental, as the country’s growth will only be around 2% for the financial year.
In response to the agency’s report, Nazmeera Moola, head of SA Investments, claimed that the agencies were inclined to be skeptical of the ANC government’s ability to stick to its position of 0% increase in remuneration.
He says there is also doubt about the government’s ability to create growth in the economy, and while it was a source of concern, the ANC government is appa
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The budget was here… now Moody’s to fear
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The week ends on a high as all three major rating agencies commended the 2018 Budget speech.
Focus now shifts to Moody’s review on the 23rd March 2018. The hike in VAT (first in two decades) and debt stabilisation sees a greater possibility of Moody’s not deciding upon the dreaded downgrade.
Speculation grows as we could expect a cabinet reshuffle taking place as soon as this weekend. This follows the change in Presidency and approach to clean governance. Globally not much on the data calendar as the USD/ZAR opens at 11.68 (same as yesterday) , EUR/ZAR at 14.37 and GBP/ZAR at 16.29. Have a splendid weekend!
Today’s Rate
USD/ZAR 11.5943
GBP/ZAR 16.1970
EUR/ZAR 14.2811
ZAR/JPY 9.218
CNY/ZAR 1.8318
AUD/ZAR 9.0676
CHF/ZAR 12.4196
AED/ZAR 3.1589
SGD/ZAR 8.7662
NOK/ZAR 1.4711
EUR/USD 1.2318
GBP/USD 1.3971
GBP/EUR 1.1346
All rates quoted are the interbank rates at time of publishing and shown for in
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SONA: Ticked, next-up: Budget – tick tock…
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By all accounts President Ramaphosa’s first address to the nation was a roaring success.
All eyes now shift to the 2018 Budget Speech set for Wednesday at 14:00. The rand’s reaction to SONA was muted, with markets waiting to see Wednesday’s balancing act. National Treasury’s focus will be on how to confront the ballooning budget deficit and government debt, amongst many other issues (with the short term goal being to avoid yet another credit rating downgrade).
A reaction from Moody’s is expected towards the end of the week with a significant USD/ZAR reaction anticipated (possibly in the rand’s favour). Have a great Monday!
Today’s Rate
USD/ZAR 11.6703
GBP/ZAR 16.3399
EUR/ZAR 14.4672
ZAR/JPY 9.137
CNY/ZAR 1.8385
AUD/ZAR 9.244
CHF/ZAR 12.5682
AED/ZAR 3.1808
SGD/ZAR 8.8955
NOK/ZAR 1.5009
EUR/USD 1.2399
GBP/USD 1.3998
GBP/EUR 1.1290
All rates quoted are the interbank rates at time of publishi
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