Rand could hit record-low R18/$ in 2020 as junk status looms

The rand, which defied a stagnant domestic economy to post an annual gain in 2019, could drop by almost a third in 2020 if SA loses its last remaining investment-grade rating as widely expected, according to Citadel chief economist Maarten Ackerman.

A downgrade would send shock waves through bond markets, Ackerman said in a research note on Tuesday. SA’s fiscal picture is bleak and deteriorating, and government hasn’t yet been able to get any real traction in dealing with the structural issues strangling the economy, he said.