JOHANNESBURG, Feb 20 (Reuters) - The South African rand
was steady in early trade on Monday, at the start of a week in
which fiscal policy will be in focus, with the finance minister
due to present this year's budget.
At 0645 GMT, the rand traded at 18.0500 per dollar,
not far from its previous close of 18.0375.
The dollar was also little changed against a basket of
global currencies .
Finance Minister Enoch Godongwana will deliver his 2023
budget speech on Wednesday.
As well as presenting updated revenue, expenditure and
economic growth forecasts, he is expected to outline a plan for
the government to take on part the debt of struggling state
power utility Eskom.
A Reuters poll last week predicted that the consolidated
budget deficit would narrow to 4.5% of gross domestic product
(GDP) for the fiscal year beginning in April and to 4.4% of GDP
for the following year, from 4.8% of GDP in 2022/23.
Also this week, global watchdog the Financial Action Task
Force (FATF), which sets standards on combating money laundering
and illicit financing, could add South Africa to its "grey list"
at meetings scheduled to happen in Paris.
Being added to that list would be a reputational knock for
South Africa and could hurt local asset prices, as grey-listed
countries are subject to greater monitoring by the FATF on
concern that they are at higher risk for money laundering and
terrorist financing.
The government's benchmark 2030 bond was slightly
stronger in early deals, with the yield down 1.5 basis points at
10.100%.
(Reporting by Alexander Winning; Editing by Bradley Perrett)
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.