“I wouldn’t expect to see much of an extension of the rebound beyond today’s move”, UBS strategist Manik Narain said. The markets responded well to a familiar face.
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Gordhan, 66, was named as finance minister on Sunday after Zuma abandoned his initial choice of little-known lawmaker David van Rooyen.
“The ANC has today put the ANC first, and South Africa second”. This rating is only one notch above “junk” status and in-line with S&P’s rating, although S&P have a negative outlook on the rating, while Fitch have a stable outlook. It is abundantly clear that the president has no understanding of economics and the impact of his rash decisions will impact most on the poorest of the poor.
Dudu Myeni has been known to be a close ally of Zuma. The sudden reshuffle led to a panic on the stock market, and the value of the rand fell sharply against the dollar. Insiders are reported to have confirmed Nene’s shuffle out of finance was due to an urgent restructuring deal in the South African Airways-Airbus deal.
“Given the prevailing economic climate, we appreciate the sentiment expressed by the Minister of Finance that there shall be no additional expenditure unless there is additional revenue which is sourced”, she said. Uniting all South Africans behind a common goal is his priority, and he’ll work hard to “stabilize the situation” as soon as possible, he said.
Kokkie Kooyman, a fund manager at Sanlam Investment Management Global, said the president made it seem as though fiscal prudence was not a concern for him.
His re-appointment sent the currency up, recovering from just over 16 rand to the dollar to about 15 by Monday morning, according to currency site xe.com.
The country’s currency, the Rand, plummeted to new lows as the news broke. “A motion of no confidence is the best mechanism to ensure that President Zuma is brought to account”. The committee has the authority to recall a president, as it did with Thabo Mbeki in 2008.
I have received many representations to reconsider my decision.
Business leaders pressured senior members of the governing African National Congress into demanding that Zuma review his choice of finance minister after suddenly firing Nhlanhla Nene last week, three people familiar with the situation said.
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At the time of going to press, the newly appoined Minister of Finance Pravin Gordhan had a press conference, where he said on the national television that; fiscal prudence shall not be compromised and good governance is non negotiable.
