Rand weakens after SONA postponed: economist

File photo: The SONA was due to be delivered by President Jacob Zuma on Thursday, 8 February 2018. According to an economist postponement of SONA has lead to the weakening of the South African Rand. Photo: Reuters / Mike Hutchings

JOHANNESBURG – An economist has explained that the effect on the Rand, after SONA was postponed. 

Isaah Mhlanga of the Rand Merchant Bank Economist says, "It weakened on the basis of falling equity prices in the US but it was aggravated by political noise on President Zuma resigning, Zuma no longer resigning and also the postponement of SONA introduces uncertainty.”

READ: Rand firms as the ANC counts votes

“The Deputy President went to Davos and told investors he has everything under control he told them the nuclear deal is off the table now he comes back and he can't even control his own party's affairs. It says things are not well in the ruling party and if things are not well in the ruling party it says things are not well in SA Inc. So it has big ramifications for financial markets indeed."

 

eNCA

Discussion Policy

eNCA.com would like to send you push notifications.
Notifications can be turned off any time in your browser settings.
You have been registered for browser notifications