Rand, bonds weaken following budget announcement delay

South Africa’s rand and bonds weakened after parliament delayed the presentation of the annual budget, an unprecedented decision that highlighted increasing strains in the nation’s coalition government.  

“There has not been agreement in terms of parties in the executive to find one another in proposals of the budget,” Speaker of Parliament Thokozile Didiza told lawmakers on Wednesday.

Finance Minister Enoch Godongwana had been scheduled to present his budget at 2 p.m.

Earlier, the Democratic Alliance said it would hold a briefing later on Wednesday to discuss its “resolute position” on the budget process after reports that the government is considering increasing taxes.

An increase of as much as a two percentage points increase in the VAT rate, currently at 15%, was budgeted for.

The government will hold an urgent media briefing at 3 p.m., according to the Government Communication and Information System.

The rand extended an earlier decline, weakening as