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IMF downgrade could signal further rating downgrade for SA

13 October 2014 | General

The recent downgrade by the International Monetary Fund (IMF) to South Africa’s economic growth for 2014 to 1.4% from 1.7%, highlights the fragility of the local economy and could signal a further sovereign credit rating downgrade or negative amendment to the outlook. The downward revision by the IMF is aligned to the South African Reserve Bank’s recent downward guidance of around 1.5% GDP growth for 2014.

A decline that may just be a turning point - BankservAfrica Index

09 October 2014 | General

The South African economy remains fragile, but less than before, according to the latest BankservAfrica Economic Transaction Index (BETI). The irony of this statement is reflected in the numbers. While the economy declined by -1.4%, it is less than the August decline of -3.2%.

The clock is tickin’, Mr. Putin

07 October 2014 | General

Today, the USDRUB exchange rate crossed above 40.00 for the first time since the ruble revaluation of 1998. Against even the Euro, the ruble has also been weakening since mid-year, though it has yet to reach the modern record low versus the Euro reached during the initial phase of the Ukraine crisis earlier this year, when EURRUB traded as weekly as 51.15 as the Euro has also been exceptionally weak in recent weeks (Currently, EURRUB trades at 50.00.)