Rand plummets on back of massive Cabinet reshuffle

The rand is continuing its declines on the back of President Jacob Zuma's massive Cabinet reshuffle.

At 7:00am the currency was trading at R13.57 to the dollar.

The rand's movement suggests Malusi Gigaba and Sfiso Buthelezi, who are replacing Gordhan and Jonas, will face a tough task convincing investors and the market at large of their ability to steer the economy through tough times.

Gigaba and Buthelezi have “zero knowledge of how Treasury works", Economist Iraj Abedian told 702’s Xolani Gwala on Friday morning.

The rand's weakening this week is the most severe percentage drop since the currency's downward movement when Nhlanhla Nene was removed as Finance minister in December 2015.

At 6pm on Thursday, the rand was trading at R12.81 to the dollar, this was shortly before President Jacob Zuma was due to meet the other five members of the ANC’s top six.

By 10:26pm, the currency had weakened to R13.27, before dropping further to R13.35 at 11:28pm.

The rand rose to a session high of R12.82 after Reuters exclusively reported that Zuma is considering offering to step down next year, at least 12 months before his term as South African president ends.

Bonds reached their firmest since Monday, with the yield on benchmark paper due in 2026 falling 12 basis points to 8.595%.

Inflation slowed to 6.3% in February from 6.6% the previous month, while the current account deficit narrowed to near a six-year low, giving policymakers room to consider a rate cut to buoy the ailing economy.

At 8:44am the rand was trading at R13.46 to the dollar.


Recommended

by NEWSROOM AI
Read More
How to build a business that will survive constant technological change

How to build a business that will survive constant technological change

The Money Show’s Bruce Whitfield interviews Pavlo Phitidis, founder of Aurik Business Accelerator.

How to pay up to 45% less tax (and save the SA economy while you’re at it)

How to pay up to 45% less tax (and save the SA economy while you’re at it)

The Money Show’s Bruce Whitfield interviews Darryn Faulds, a fund manager at Grovest Group.

Will Government hit punch-drunk South Africans with more tax hikes in 2019?

Will Government hit punch-drunk South Africans with more tax hikes in 2019?

Revenue collections are surprisingly good, so far, thanks to the VAT hike. Bruce Whitfield interviews PwC's Kyle Mandy.

9 tough questions you should never be afraid to ask your financial advisor

9 tough questions you should never be afraid to ask your financial advisor

Times are tough. Don’t spare her feelings! You must ask these questions of your advisor, implores Galileo Capital's Warren Ingram.

'Gigaba and his deputy have zero knowledge of how Treasury works'

'Gigaba and his deputy have zero knowledge of how Treasury works'

Economist, Dr Iraj Abedian, says the changes are the biggest since 1996.

Zuma announces new Cabinet

Zuma announces new Cabinet

Here is the full list of President Jacob Zuma's new Cabinet appointments.

Popular articles
Yet another wet and cold weekend for Gauteng warns weather service

Yet another wet and cold weekend for Gauteng warns weather service

Gauteng residents are warned to brace themselves for another weekend of heavy rain, possible hail and damaging winds.

[Watch] SA choir stuns with isiZulu cover of Ed Sheeran’s ‘Shape of You’

[Watch] SA choir stuns with isiZulu cover of Ed Sheeran’s ‘Shape of You’

Khabazela shares some of the most popular tweets, posts, and videos on 'What's gone Viral'.

How to pay up to 45% less tax (and save the SA economy while you’re at it)

How to pay up to 45% less tax (and save the SA economy while you’re at it)

The Money Show’s Bruce Whitfield interviews Darryn Faulds, a fund manager at Grovest Group.

10-year-old maths whiz Sbahle Zwane gets a scholarship from Curro school

10-year-old maths whiz Sbahle Zwane gets a scholarship from Curro school

Azania Mosaka catches up with Sbahle Zwane's mother to hear about developments with his schooling.

'It's unacceptable that government officials pay R75 for luxury apartments'

'It's unacceptable that government officials pay R75 for luxury apartments'

IFP national spokesperson Mkhuleko Hlengwa says the party is calling for a review of these rates that are a cost to taxpayers.

Getting drunk improves creative problem solving - Harvard Business School

Getting drunk improves creative problem solving - Harvard Business School

Bruce Whitfield asks branding and advertising expert Andy Rice about a peculiar study that has creatives reaching for the tequila.