Gordhan’s medium-term budget policy statement

Finance Minister Pravin Gordhan announced bold steps to stem the appreciation of the rand yesterday, and forecast a series of smaller than expected budget deficits despite political pressure for higher spending.

Part of an almost R30bn tax revenue overrun this year would be used to build foreign exchange reserves while exchange controls were eased, both for individuals and companies, he said.

The news knocked the rand 1,7% weaker to R7,07 against the dollar, erasing some of the hefty gains over the past year which threaten the economy’s recovery.