Finance Minister Pravin Gordhan has delivered his 2016 budget speech to Parliament, after which the rand weakened against the US Dollar.
Finance Minister Pravin Gordhan has delivered his 2016 budget speech to Parliament, after which the rand weakened from R15.23 to R15.58 against the US Dollar.
Gordhan’s first budget after his return was relatively calm and workmanlike, after expectations of tax hikes and spending cuts amid tough economic times.
He stressed the need to reaffirm the government’s commitment to close the gap between spending and revenue, implementing a plan for stronger economic growth and cooperation between government and the business sector.
Not everyone was convinced that the 2016 budget will strengthen the economic position of South Africa, though, and the rand weakened immediately after Gordhan’s budget was published.
The graph below shows the rand vs the US dollar on 24 February.
