Rand holds steady near the end of an eventful week
Rand Merchant Bank’s John Cairns says the market will continue to pay attention to how the no-confidence vote pans out, ‘in hope more than expectation’
The rand was little changed on Friday morning, but maintained a weaker bias at the end of a week during which local politics took priority over economic data. The local currency suffered a setback earlier in the week after Public Protector Busisiwe Mkhwebane recommended that the Reserve Bank’s mandate be adjusted, prompting a backlash from the various quarters. Mkhwebane said the central bank should seek to promote economic growth rather than preserve the value of the currency, a recommendation both Parliament and the Bank intend to take on legal review. The rand fell as much as 2% in the immediate aftermath of the comments before regaining some ground on Thursday as the spotlight turned to the Constitutional Court’s ruling on a secret ballot in a no-confidence vote. Opposition parties led by the United Democratic Movement (UDM) approached SA’s highest court asking that the vote of no confidence in President Jacob Zuma be conducted via secret ballot. The no-confidence motion follows...
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