Moody's downgrades South Africa to junk status

Chris_the_Brit

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IMF said they will help countries who needs assistance the pandemic :

We will be back of the queue as RW Johnson writes

David Malpass, the head of the World Bank, has been working closely with the IMF on the problem of the low income countries. He says the WB would do what it can by front-loading grants and extending soft loans but he was emphatic that whatever happened, there would have to be debt relief – by which, of course, he means debt forgiveness. Without doubt such statements will have caused a sharp raising of heads among the many petitioners for aid, since debt forgiveness would be a dream solution for them.

This context has to be taken into account by South Africa. If it needs to go to the IMF it will find itself part of a long queue. Understandably, the IMF will see the low income countries as the most deserving and will look somewhat askance at middle-income countries like South Africa or Argentina which have got themselves into a mess simply by their own foolish policies. If you are dealing with the terrible problems of, say, Bangladesh, Somalia or Sierra Leone you are likely to become a little short-tempered when faced by special pleading as to the need to keep South African wages higher than all its emerging market competitors.

Faced by the plethora of demands upon it the IMF may well need to go back to its shareholders to ask for an extension of credit so as to give it more money to lend. The USA is chief among those shareholders and effectively has a veto. Donald Trump is no friend of the Bretton Woods institutions or, indeed, of foreign aid altogether, so he might well veto such an increase. So, even for the IMF, money could well be short.
 

Brenden_E

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Aug 30, 2006
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Ever heard of Stats SA? Its considered stellar.
You are talking out yer butt. There's no updated stats for the last 5 years and you would have known this if you checked.

Secondly, the majority of information that can independently be verified we see what comes out of government is not the truth. So what kind of nincompoop would trust the government's numbers on this?
 

Brenden_E

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Let the bodies hit the floor!

1585532836114.png

I'm pretty sure it'll exceed R18/$ today. Then I wouldn't be suprised if we're going to see it break through the R20/$ mark this year.

That being said, our currency is a bit of an enigma. You never know.
 

Arzy

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Apr 18, 2004
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Much too early to say actually, give it some time, its up again now:

JSE.jpg
 

Brenden_E

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Aug 30, 2006
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Much too early to say actually, give it some time, its up again now:

View attachment 809051
Our currency is an enigma to me. I understand the initial rebound after the Chinese had a rate cut, but we almost defaulted on our bonds and the SARB had to step in. It's super bad my expectation is that any investor runs for the hills resulting in a downhill train all the way, but nope, the enigmatic rand continues its waltz in no discernable direction.
 

jackshiels

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You are talking out yer butt. There's no updated stats for the last 5 years and you would have known this if you checked.

Secondly, the majority of information that can independently be verified we see what comes out of government is not the truth. So what kind of nincompoop would trust the government's numbers on this?
OK, so you don't know what you're talking about :). I used a bunch of their work through UCT economics for studies, by the way. They're considered one of the best out there by academics, and we were advised to do so.
 

Lupus

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