SA President Zuma Survives Impeachment Vote, Rand Collapses
Nov, 29th 12:42
The South African Rand dropped more than 2.4% on Tuesday, paring all of its gains versus the U.S. dollar yesterday after a local newspaper reported that scandal-tinged President Jacob Zuma had survived a ruling party vote to remove him.
The pair USDZAR turned lower last week as the Rand was supported by news that that a good portion of the ANC’s leadership want a new leader for the country. Zuma’s presidency has been plagued by accusations of corruption and other scandals.
Before having been accused of allowing members of the prominent Gupta family to influence cabinet appointments, Zuma has had to take out a home loan to repay 7.8 million rand (£405,146) of state money which had been spent on non-security, lavish improvements to his private residence.
Market analysts predicted more rand weakness as South Africa’s credit rating may be downgraded.
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