Rand in freefall as Moody’s puts SA on downgrade review.

Image Credits: Paul Saad / flickr

While still some way away from its worst ever, the rand was heading towards R14 to the dollar and R17.50 to the pound on Tuesday morning.

This follows junk status by one ratings agency and “downgrade review” by Moody’s later on.

Like with S&Ps decision, Moody’s statement said the decision was down to political instability.

A statement read:

The decision to initiate a review for downgrade was prompted by the abrupt change in leadership of key government institutions. That action has raised questions regarding:

– progress on reforms previously identified as essential to sustain South Africa’s fiscal and economic strength, and the effectiveness of South Africa’s policy making institutions; and



By Alexis Haden.
Full story at The South African.