Rand slumps as Zuma survives vote

The rand tumble 2.3 per cent  the most among any major emerging market currencies  to 15.12 per dollar on Tuesday amid concerns that efforts to oust Mr Zuma will continuepotentially distracting policymakers from turning around the country’s flagging economy.

The main opposition partythe Democratic Allianceintroduced the impeachment motion last Thursdayimmediately after the Constitutional Court ruled that Mr Zuma had violated the Constitution by refusing to reimburse taxpayers for some of the money spent upgrading his private home.

Although Mr Zuma had been widely expected to survive the motionanalyst stay they expect efforts to remove him to continue.

While a swiftorderly change of government to end the current political crisis would be welcomed by the marketsMr Ashbourne said this is unlikely to happen unless Mr Zuma is abandoned by his own partythe African National Congress.

With the party’s top leaders happy to rally behind the president so farthestand-off with the opposition party could turn into a longdrawn-out crisis oflegitimacy.

There remains the risk that President Zuma will hit the markets with another disruptive political surpriselike the unexplained cabinet shuffle that caused thread to fall by 8in December 2015.

 

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source:http://www.ft.com/fastft/2016/04/05/rand-tumbles-as-zuma-survives-impeachment-vote/accessed6/04/15(2)Picturehttp://www.all4women.co.za/690565/news/south-african-news/zuma-to-replace-mandela-on-all-sa-currencyaccessed6/04/16

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