The rand strengthened by 1% against the dollar following the commencement of Tito Mboweni’s 2021 budget speech. This comes on the back of some positive spin by the finance minister, with proposed tax increases announced in the medium-term budget speech being withdrawn due to economic circumstances. Corporate income taxes have been lowered to 27%, which will come as some much needed respite to struggling corporate South Africa.
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Although all emerging market currencies are renowned for their volatile nature, the rand, which is seen as a proxy to the inherent risk in South Africa, has traded within a relatively stable band for the duration of the day. The rand was trading at R14.46 to the dollar, just after 15h00 SAST.
