Between the global COVID-19 crisis and the decision from Moody’s to downgrade South Africa’s sovereign credit rating in Q1 2020, the rand has had a torrid year so far. Is R18.70 to the US dollar fair value, could it fall further, and what are the chances that it could rebound? As regular readers of our…
It would be an understatement to say that the first quarter of 2020 has been a wild ride. The US’s three major stock indices — the Dow, the S&P 500 and the Nasdaq Composite — dropped 23.2%, 20% and 14.2% respectively for the quarter. The MSCI World, meanwhile, slumped 21.9% for the quarter in USD…
In a not unexpected move, Moody’s downgraded South Africa’s sovereign credit rating to one notch below investment grade at Ba1. They also kept South Africa’s outlook as negative, indicating the risk of a further downgrade within the next eighteen months. As a result of this move, South Africa will no longer form part of the…
