Weaker rand, higher bond yields hurts SA’s finances – Moody’s

South Africa’s external financing conditions worsened in recent months due to a falling currency and rising bond yields, making it harder for government to service foreign debt and raise funds in the future, Moody’s said on Tuesday.

“Tightening external conditions can affect the overall cost of debt for the government, both through the availability and cost of external finance and if currency pressure leads the South African Reserve Bank to raise policy rates significantly,” Moody’s said in a research note.