ZAR poised for further decline – BBH

Analysts at BBH suggested the South African Rand stays under pressure in the near term mainly on political jitters.

Key Quotes

“The rand has been firm since February 2016 under higher rates”.

“South Africa’s fundamentals remain fragile due to weak growth, high infla­tion, and political uncertainty. The rating agencies have warned that the budget plan is not credible, citing persistent weak growth”.

“Our own ratings model has South Africa at BB/Ba2/BB. The rand continues to carry a high risk of a sudden fall”.