Peregrine Treasury Solutions

27 Mar 18

Rand Makes Strong Gains Against the Dollar after Moody’s Ratings Decision


The Rand firmed by more than half a percent against the dollar in morning trade on Monday, cheered by the news that South Africa escaped a third junk rating as Moody’s Investors Service kept its assessment of the nation’s debt unchanged on Friday, citing a more transparent and predictable policy framework under president Cyril Ramaphosa.

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26 Mar 18

Factors Influencing Rating Decisions


When making their decisions, rating agencies mainly look for treasury stability and government policy stability. In simple terms, the agencies seek to answer the following questions: • Can the country service its interest and debt payments and • Can policy drive economic growth and activity?

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26 Mar 18

SA's Next Goal to Have Previous Rating Downgrades Reversed


The Rand took Moody’s decision to keep South Africa’s sovereign credit rating at one notch above junk status in its stride, according to Bianca Botes, Corporate treasury manager at Peregrine Treasury Solutions.

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26 Mar 18

Reserve Bank Interest Rate Cut Would be Welcome


IT’S up to the Reserve Bank’s sevenmember monetary policy committee (MPC) to make it a happy Easter with an interest rate cut on Wednesday to follow up on last week’s good Friday when South Africa was spared a downgrade by Moody’s. One of the Reserve Bank’s most important mandates is to keep inflation in check (otherwise known as defending the value of the rand). When inflation rises too high, the Bank increases interest rates to curb spending.

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19 Mar 18

Rand Remains Strong as Zuma Faces Prosecution Charges


The rand remained steady on Friday after the National Prosecuting Authority (NPA) announced that former President Jacob Zuma's prosecution would move forward. The rand was at R11.95 to the dollar and R16,65 to the pound. One Euro costs R14,67.

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