The local unit fell to R14.57 to the dollar by 5pm after hitting R14.50 on Wednesday after Mboweni said in his maiden Medium Term Budget Policy Statement (MTBPS) that government debt had widened far more than initially thought.
Mboweni told Parliament that the risk of approaching the Washington-based IMF for help could become more than a reality if the debt risk remained elevated.
“If debt to gross domestic product (GDP) ratio reaches 60percent, the IMF will come knocking and take over,” Mboweni said. “We want to avoid that.”
Mboweni’s warning comes after his MTBPS showed that the government debt would deteriorate from 55.1percent of GDP in 2018/19 to 57.4percent in 2020/21.