SA economy rating could be downgraded: economist
While there's much excitement about the rand gaining strength to reach the R15.30 mark against the dollar one economist says there's no reason to be jovial.
The local currency rallied to close the day at such levels yesterday after plummeting to R16 to the American currency earlier this year.
The significant dent to the rand came following the shock axing of Nhlanhla Nene as Finance Minister in December whom President Jacob Zuma replaced with the relatively unknown David van Rooyen.
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Van Rooyen was himself replaced by Pravin Gordhan after only three days at the helm.
Economist Dawie Roodt says we're still very much facing the possibility of being downgraded to junk status.
"In fact, I think chances are more than 50% that South Africa is going to see a downgrade unless the Minister of Finance really pulls a rabbit from his hat next week in the budget speech. I think that it's too late to prevent a downgrade," he said.
(File photo: Getty Images)