JOHANNESBURG – As the rand continues to gain ground, South Africans have been warned not to become financially complacent.
Consumers have also had some financial relief as the petrol price decreased by 99 cents last week.
But Efficient Group’s chief economist Dawie Roodt has warned that ratings’ agencies may still decide to downgrade the country later this year.
He says finances may become tight again in the next few months.
"I still think that we are probably going to see a downgrade by the end of this year. In the short term we are getting the benefit from a stronger rand and a lower international oil price but I am afraid by the end of this year we are probably going to see oil prices going up again and the rand going weaker again after a possible downgrade."
On Friday rating's agency Fitch issued a stern warning to the African National Congress not to implement populist policies following the party's loss of support in the local government elections.