Rand
reacts negatively amid cabinet reshuffle
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President Jacob Zuma shakes hands with finance minister Pravin Gordhan after the budjet speech of 2017 in parliament, Cape Town (Shutterstock) |
On the 22nd of
March 2017 the rand hit an 18 month high following poor performance of the
dollar. Three days later the rand started to depreciate following an order by President
Jacob Zuma telling the finance minister Pravin Gordhan to cancel his investor
road show trip in Great Britain and the United States of America.
 |
| President Zuma and the newly appointed minister of finance Malusi Gigaba shake hands during a Home Affairs event (VOCfm.co.za) |
The rand reacted negatively
to this stunt, since this announcement the rand has depreciated by 4% against
the dollar. It is alleged that the president summoned the minister back into
the country because he is planning to remove him from his position.
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| Financial indicators(Shutterstock) |
On the early hours of Friday morning, the president announced 20 cabinet reshuffles. The finance minister and his deputy Mcebisi Jonas got the boot.
Fact box
- 20 cabinet changes made by the president.
- 10 new ministers and 10 deputies ministers were appointed during the cabinet changes.
- The rand reacted negatively, it recorded a loss of 7% against the dollar.
- Cyril Ramaphosa and Gwede Mantashe claim they knew nothing about the cabinet reshuffles.
- As it was reported earlier this week, the presidency confirmed those speculations by firing minister Pravin Gordhan and his deputy, Mcebisi Jonas.
https://youtu.be/SOPIMjbCb-s
https://soundcloud.com/davinci_sa/cabinet-reshuffle-sir-da-vinci
