Rand retreats as clarity on Zuma awaited

Ramaphosa’s land reform problem

Rand strengthens as clock ticks on Zuma's administration

The end seems near for embattled South African President Jacob Zuma as daggers seem to have been drawn against him with reports suggesting that the country's ruling party are making plans to force him out of office.

According to a report by Reuters, the currency is expected to trade in the range of R12.00 to R12.25 on Wednesday, after it eased off its highs against the dollar during European trade on Monday.

Meanwhile, Bloomberg reported that the clock is ticking on president Jacob Zuma's scandal-ridden administration.

Ramaphosa and his delegation are expected to assure global investors that South Africa is no longer facing political uncertainty.

There has been widespread speculation in local media that the African National Congress' (ANC) 80-member Executive Committee passed a resolution this week calling for the removal of Zuma as South African president.

Zuma's exit would catapult Ramaphosa into the presidency and allow him to begin to fix an economy that suffered its second recession in nearly a decade in 2017 and has struggled to mount a strong recovery.

"It is a delicate procedure to engineer an early retirement for President Zuma", political analyst Daniel Silke told AFP. He's also vowed to fight the graft that have marred Zuma's administration, Bloomberg said.

"There will be interaction between President Ramaphosa and President Zuma", said Magashule yesterday. His election as ANC leader helped boost the rand 10% last month.

Further strengthening would also cause fuel price cuts and place downward pressure on inflation, with the possibility of the rand moving towards R10 to the dollar should Ramaphosa continue to make reforms and promote growth, she said.

At 0629 GMT, the rand traded at 12.0950 per dollar, 0.35 percent lower than its NY close on Monday. "The NEC has issued a statement on the totality of discussions yesterday", the ANC spokeswoman said.

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