South African Rand Strengthens after Budget

2026-02-25 12:55 By Agna Gabriel 1 min. read

South African rand rose to trade below 16 per USD, holding near its strongest level since 2022, after the government signaled that public debt is set to peak this fiscal year.

Finance Minister Enoch Godongwana told lawmakers that debt will stabilize for the first time in 17 years as the budget deficit narrows and debt service costs ease, pointing to a recent credit rating upgrade and a bond market rally.

The 2026 Budget Review projects the debt to GDP ratio peaking at 78.9% in 2025 to 2026, slightly above prior estimates due to weaker nominal growth and higher borrowing, though debt payments as a share of revenue are seen falling to 20.2% by 2028 to 2029.

Expectations that Fitch Ratings and Moody's Ratings could shift their outlook to positive, alongside strong precious metals prices and political stability, further supported the currency.



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South African Rand Strengthens after Budget
South African rand rose to trade below 16 per USD, holding near its strongest level since 2022, after the government signaled that public debt is set to peak this fiscal year. Finance Minister Enoch Godongwana told lawmakers that debt will stabilize for the first time in 17 years as the budget deficit narrows and debt service costs ease, pointing to a recent credit rating upgrade and a bond market rally. The 2026 Budget Review projects the debt to GDP ratio peaking at 78.9% in 2025 to 2026, slightly above prior estimates due to weaker nominal growth and higher borrowing, though debt payments as a share of revenue are seen falling to 20.2% by 2028 to 2029. Expectations that Fitch Ratings and Moody's Ratings could shift their outlook to positive, alongside strong precious metals prices and political stability, further supported the currency.
2026-02-25
South African Rand Strengthens on Budget Optimism
The South African rand rose slightly to trade just below 16 per USD, holding close to the highest since 2022, as investors looked ahead to the 2026 national budget, to be tabled later this week by Finance Minister Enoch Godongwana. Optimism prevailed ahead of a statement expected to show continued fiscal consolidation, with a faster pace of deficit reduction, a widening primary surplus and stabilizing public debt amid relatively favorable economic conditions. Moreover, a market-friendly budget is widely seen as paving the way for improvements in the country's sovereign credit-rating outlook. The rand has been bolstered by soaring precious-metals prices, ongoing reforms and signs of an economic recovery. Months of political stability have further strengthened investor confidence in the country.
2026-02-24
South African Rand Strengthens
The South African rand was slightly firmer around 16 per USD, driven by rising prices of precious metals and a softer dollar amid renewed trade uncertainty. Locally, investors are optimistic ahead of Finance Minister Enoch Godongwana’s Wednesday budget, expecting that elevated commodity prices will support ongoing fiscal consolidation and public debt stabilization. In the meantime, markets are seeking more clarity on economic reforms aimed at stimulating growth, particularly following President Cyril Ramaphosa’s commitments to job creation and infrastructure development during his State of the Nation Address (SONA).
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