Kganyago Says South Africa May Avoid Moody's Cut With Reforms

The video discusses South Africa's credit rating, emphasizing the role of policymakers in maintaining it. It explores the potential consequences of a downgrade by Moody's, such as falling out of investment grade bond indices, investor sell-offs, and economic impacts like capital outflows and inflation. The current credit rating is stable, but risks remain, which are within the control of South African policymakers. Implementing Moody's recommendations could prevent a downgrade.

What is the primary responsibility of South African policymakers regarding the country's credit rating?

• To implement measures to avoid a downgrade

• To increase the country's GDP

• To negotiate with international investors

• To reduce inflation rates

What could happen if South Africa is downgraded from the investment grade bond indices?

• Investors might buy more South African bonds

• The bond yields will decrease

• Investors may have to sell South African bonds

• The exchange rate will appreciate

How might a sustained depreciation of the exchange rate affect the economy?

• It could cause the Central Bank to respond to rising inflation

• It might result in lower inflation

• It might stabilize the financial market

• It could lead to increased exports

What is the current status of South Africa's credit rating according to the transcript?

• It is on a negative outlook

• It is stable

• It has been downgraded

• It is improving

What can South African policymakers do to manage the risks of a downgrade?

• Ignore Moody's concerns

• Increase foreign debt

• Implement measures raised by Moody's

• Focus on short-term economic gains