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ZAR Bumped Higher on Eskom Plan, Faster Fiscal Consolidation vs. Forecast

SOUTH AFRICA
  • National Treasury documents outline plans for Eskom to receive ZAR 254bln in debt relief, representing 60% of the outstanding Eskom debt pile - broadly inline with expectations of 'half to two-thirds' of all debt.
  • USD/ZAR sees immediate slippage, with budget gap headlines representing a faster pace of fiscal consolidation than expected: 4.0% of GDP vs. Exp. 4.5%.
  • Growth forecasts revised lower, but inline with expectations to 0.9% for 2023 from 1.4% in October. USD/ZAR prints a new daily low at 18.1767 - but still well above yesterday's lows of 18.0686.

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