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USD/ZAR Stumbles at 14.50; Fiscal Woes May Re-Surface Ahead of Feb Budget

SOUTH AFRICA
  • USD/ZAR takes a bit of a knock on an attempt to push through 14.50 - pulls back to 14.60.
  • Something to note going forward in Jan/Feb is fiscal concerns are likely to re-emerge ahead of the Feb budget and may cap ZAR optimism
  • Limited progress on fiscal consolidation to arrest the decline towards the 100% Debt to GDP mark (estimated to stabilise at ~97% by 2025 by Mboweni)
  • and also address the public sector wage bill will likely be looked down upon by credit agencies
  • May see a repricing in of the fiscal risk premium at the beck end of the curve towards the end of Jan
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com
MNI London Bureau | +44 020-3983-7894 | murray.nichol@marketnews.com

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