South Africa’s rand briefly dipped after Finance Minister Mboweni announced a wider budget deficit and soaring debt in an emergency supplementary budget on Wednesday, but the currency recovered as investors looked beyond local issues.
At 1445 GMT, the rand was 0.35% weaker at 17.3000 per dollar, compared with its session low of 17.4100 shortly after the budget.
South Africa’s budget deficit is projected to widen and debt to balloon, the Treasury said on Wednesday, as the COVID-19 pandemic stifles an economy that was already in recession.
Read the full article and more in Reuters.
Author
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Rachel Ziemba
Adjunct Senior Fellow, Energy, Economics, & Security Program
Rachel Ziemba is an Adjunct Senior Fellow at the Center for a New American Security (CNAS). Her research focuses on the interlinkages between economics, finance and security i...
