Rand crashes and then rebounds following Finance Minister debacle

South Africans who waited in anticipation of getting a sensible explanation from the ANC about President Jacob Zuma’s decision to remove Nhlanhla Nene from his position as finance minister were left disappointed as the party said little about this.

Zuma’s new appointee, David van Rooyen, is mostly unknown in the financial market with most of his experience obtained in the field of municipal finance.

“I have received many representations to reconsider my decision (of van Rooyen’s appointment)”.

“As a democratic government, we emphasise the importance of listening to the people and to respond to their views”.

Minister Gordhan will return to a portfolio that he had held proficiently during the fourth administration.

The rand immediately improved after the reappointment of Pravin Gordhan as Finance Minister on Sunday, after a week of market turmoil followed a shock move by President Jacob Zuma.

New South African Finance Minister Pravin Gordhan has said concerns of rating agencies and investors have been noted and the government “shall endeavour to protect the investment”.

Mr Nene had also refused to rubber-stamp spending on a huge nuclear power programme.

Monday, the local currency had recovered some ground, to 15.11 to the dollar.

Gordhan’s track record in the position he previously held for five years speaks for itself.

Gordhan says he will talk to South African Airways chairperson, Myeni, who many blame for the axing of former Finance Minister.

On Monday, Gordhan reassured the country that the economy will be steadied.

The country’s currency, the Rand, plummeted to new lows as the news broke.

The presidency’s statement said Gordhan s role would include “promoting and strengthening the fiscal discipline and prudence”.

“There was no need for South Africa to have had to endure the effects of the poor, irrational decision made on Wednesday”. Although Mr Zuma is unpopular among South Africans (a recent Afrobarometer survey found that trust in him had dropped by nearly half over the past four years), he has ensconced his powerful supporters within the ANC executive and key state institutions.

“International investors are probably thinking: why didn’t the president make a much more considered decision in the first place?” he said.

Over the weekend, amid individual calls that Zuma resign, groups of leading academics, church leaders, politicians and labor leaders sent open letters to the president questioning his judgment and his stewardship over the economy.

Mmusi Maimane, the leader of the main opposition Democratic Alliance party, said: “Zuma must stop playing Russian roulette with our economy”.