# The Budget, the Ratings Agencies and the Rand | IG South Africa

> South Africa's 2018 budget, delivered by Finance Minister Malusi Gigaba, proposed cutting R85bn in spending over three years and raising VAT from 14% to 15%. Analysts expected the budget might be enough to delay a Moody's downgrade, which was due by March 23. The rand held its gains after the release.

- Date: 2018-02-22 · published 2018-02-22T12:00:00.000Z
- Category: policy · region South Africa · magnitude low
- Page: https://feedsoft.ai/events/66786-the-budget-the-ratings-agencies-and-the-rand-ig-south-africa
- Commodities: [South African Rand (ZAR per USD)](https://feedsoft.ai/c/USDZAR.md)

## Why it matters

Fiscal tightening and the reduced downgrade risk support the rand, which lowers import costs for South African feed ingredients. The impact on global grain and meal prices is minimal.

## Read by commodity

- USDZAR: bearish ▼

## Sources

- ig.com: https://www.ig.com/za/view-ig/the-budget--the-ratings-agencies-and-the-rand-42328-180222

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.