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Is the current savings environment the most volatile environment in recent history, is the focus on cryptocurrencies a good thing, and how will the political situation in South Africa affect the country’s savings environment going forward?
On Black Friday, a day when consumers plan to go shopping in the pursuit of bargains and retailers traditionally expect to go into the black (i.e. tip from loss making to profitable for the year to date), South Africa received the latest assessment of its financial health by the global credit ratings agencies.
Investors in South Africa should brace themselves for even more volatility following the downgrade by S&P Global Ratings, announced on Friday. This comes as yet another blow to an economy already facing extreme pressure from low growth and over-indebtedness.
Two key events happened this week, the South African Monetary Policy Committee met to decide on interest rate movements and the ratings agencies met to decide whether they would downgrade South Africa’s local currency rating. The latter is probably more prominent with potentially large knock-on effects on the South African economy.
What do you believe will be the biggest challenge when the COFI framework is finally implemented?