Most government debt is in rands. Only about 15% is in foreign currency and this debt is now at junk status.
Brown pointed out S&P also decided that their outlook for future downgrades was “negative”‚ meaning that S&P expects further downgrades.
What does this downgrade mean for the rand?
What does the downgrade mean for petrol and food prices?
A weaker rand means petrol prices are likely to rise. If petrol prices go up‚ food prices will follow.
Economist Dr Azar Jammine said: “If the rand goes into freefall and reaches R16 or R17 to the dollar‚ inflation will rise‚ so will food prices and the petrol price will rise. Households will suffer.”
What does it mean for your credit card‚ short-term loan‚ car loan or home loan?
What does it mean for taxes?
Food‚ petrol‚ and the cost of your loan won’t be the only things going up. Taxes could also rise.