- South African rand strengthened due to a report suggesting the ANC might abandon a VAT hike plan.
- The rand traded at 18.89 against the dollar, 1.4 percent stronger than Friday.
- The ANC may drop the VAT hike after lack of support from other parties.
- The ANC’s coalition partner, the Democratic Alliance, opposes the VAT increase.
- The DA voted against the budget’s fiscal framework and is challenging the VAT hike in court.
- Scrapping the VAT increase could maintain government stability, supporting the rand.
- The ANC and DA held constructive talks to resolve the issue.
Source: reuters.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
