Rand hits new low as it touches R16 to the dollar

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File: It is expected that wealthier South Africans will get taxed more on the money they make from selling their stocks, bonds and property.

JOHANNESBURG - The Rand has hit new lows against the dollar and the pound on Friday.

Around noon it was trading at R16,04 against the dollar, and R24 to the pound.

The currency has been in free-fall since President Jacob Zuma fired Finance Minister, Nhlanhla Nene, on Wednesday evening.

Nene has been replaced by ANC parliamentary backbencher, David Van Rooyen.

He was sworn in as minister on Thursday.

 

 

 

 

Meanwhile, Minister in the Presidency, Jeff Radebe, announced that there would be a special meeting of Cabinet’s economics cluster on Tuesday to discuss the country’s credit rating and falling currency.

International ratings agencies last week downgraded South Africa’s credit rating to one notch above junk status, and on Wednesday President Jacob Zuma axed Finance Minister Nhlanhla Nene, sending the rand into free-fall.

During a post-Cabinet briefing on Friday, Radebe said: “This meeting on Tuesday is being convened to deal with the matters of the economy. It is a continuation of discussions usually being held in Cabinet, especially now with this very bad economic climate we are under.”

Zuma replaced Nene with the little heralded David van Rooyen who was sworn in at the Union buildings in Pretoria on Thursday.

- Additional reporting African News Agency.

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