Emerging markets economist at Nomura, Peter Attard Montalto, says the appointment of Finance Minister David van Rooyen has left international investors uncertain.
He says global markets will now closely and cautiously watch decisions that will affect the rand, particularly relating to Cabinet, National Treasury and budget plans going forward.
The main issue for investors is that this is a very structural shaking of our views an the sanctity of national treasury and what macro economic policy in South Africa is all about.— Peter Attard Montalto, emerging markets economist at Nomura
Listen to the full conversation from The Midday Report with Stephen Grootes:
There is a lot more uncertainty with the appointment of someone who has no executive training and without enough experience to hold this post. Ultimately it's not about him, its about the forces that led to his appointment.— Peter Attard Montalto, emerging markets economist at Nomura
The rand may well get much weaker from here.— Peter Attard Montalto, emerging markets economist at Nomura