The Democratic Alliance (DA), the second-biggest group in the country’s coalition government, sees a “good chance” of an agreement on the nation’s budget this week, the party’s spokesperson said. The rand strengthened.

The DA and its larger partner in the government — the African National Congress (ANC) — have been at an impasse over Finance Minister Enoch Godongwana’s proposal to raise value-added tax. The DA has threatened to withhold its support for the budget as it moves through parliament unless it has more of a say over economic policy.

South African President Cyril Ramaphosa also said overnight that he’s confident the coalition partners “can develop a shared approach to unlock inclusive growth, job creation and a secure fiscal future,” according to a post on X.

The rand strengthened 0.8% to 18.28 per dollar by 7:47 am in Johannesburg, reversing some of the loss it suffered on Friday, when the DA escalated its dispute with the ANC over the budget.