The rand reacted positively following reports that President Jacob Zuma could be removed in a meeting due to be held by the top leadership of the ruling African National Congress this weekend.
The rand strengthened on Tuesday as it recorded 1.5% against the US dollar to 13.0218.
Chief economist at Nedbank, Dennis Dykes says if it happens that Zuma is not removed the rand might reverse half of its move.
I think why this is significant, it's not so much that the NEC will remove Zuma any time soon but rather it shows the extent to which a lot of people within the ANC are getting very disgruntled with the current status quo.— Dennis Dykes, Chief Economist at Nedbank
People are very concerned if you look at the economic impact...— Dennis Dykes, Chief Economist at Nedbank
It's been a very damaging period and it needs to be resolved if the economy is going to lift off again.— Dennis Dykes, Chief Economist at Nedbank
To hear more from economist Dennis Dykes, listen below:
This article first appeared on CapeTalk : Rand reacts positively to news of Zuma's possible removal