PUBLIC PROTECTOR
Ramaphosa’s political woes weigh down rand
The local currency’s implied one-week volatility is at its highest since March, with pressure coming from Eskom’s debt burden and the US-China trade war
President Cyril Ramaphosa’s political woes are playing havoc with the rand, which slumped on Monday to its weakest level in almost a year.Recent moves have also been attributed to the escalation of the trade conflict between the world’s two largest economies after US president Donald Trump announced new tariffs on Chinese imports on August 1, making the rand the most volatile currency in the world.Ramaphosa, who rose to the presidency in February 2018 on the promise of economic reform and action against corruption, has been embroiled in a court battle with public protector Busisiwe Mkhwebane over the funding of his campaign that eventually secured him the ANC presidency in December 2017.The concern among investors is that the controversies will strengthen Ramaphosa’s opponents within the ANC and might even see him being toppled. This comes as the government is struggling to contain the crisis at state-owned enterprises.Market concerns intensified in recent weeks after the governme...
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