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Rand notes and coins But the turmoil on the currency, bond and equity markets will spread to the wider economy soon enough. Image copyright Reuters Image caption Demonstrators came out in the capital, Pretoria, in response to the news of Finance Minister Pravin Gordhan's sacking last week As the rand falls, inflation will increase. This is because the price of imported goods rises in local currency terms. The flip side of this is that exports become cheaper and more competitive. As inflation increases, the central bank, the Reserve Bank, will have to increase interest rates as a counter measure. This makes the cost of mortgages, home loans and any other borrowing ordinary South Africans want to do more expensive. It also makes the cost of borrowing for companies more expensive and, as such, plays a role in slowing economic growth. Higher borrowing costs and slowing economic growth can lead to job losses. South Africa's economy grew by just 0.3% last year and is not expected to top 1% this year. In fact, some economists are saying the downgrade to junk has the potential to trigger another recession. Image caption South Africans may see higher prices in the shops as a result of the rand losing its value Getting out of junk status is difficult.

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There was blood everywhere. There were bodies on the ground everywhere, and a sense of panic, people standing by their loved ones, but also people running away. The incident, which was treated as a terrorist attack immediately, came just over two weeks after five people were killed on Westminster Bridge by a car and four months after 12 people were killed when a truck ploughed into a Christmas market in Berlin. Within three hours of the attack police released a grainy photograph of a suspect with a goatee beard wearing a green jacket, white shoes and a grey hooded top. Graphic pictures posted on social media showed the lorrys progress printed in bloodied tyre tracks on the street, the body of the dog cast off to one side. View photos Emergency services work at the scene where a truck crashed into the Ahlens department store Credit: Jonathan Nackstrand/AFP More People are lying mowed down along the whole route, reported a second witness. CPR is being given and rubbish bags are being used to cover the lifeless bodies. At a time when police across Europe are on hair-trigger alerts for terrorism, uniformed forces were deployed within minutes, many wearing gas masks, some with weapons drawn. I turned around and saw a big truck coming towards me. It swerved from side to side. It didnt look out of control, it was trying to hit people, Glen Foran, an Australian tourist in his 40s, told Reuters. It hit a pram with a kid in it, demolished it. It took a long time for police to get here.

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