The rand’s current weakness can be attributed to a myriad of structural problems facing South Africa’s economy.
Like any commodity, the value of the rand is determined by the market forces of supply and demand. Its weakening is also affected by a myriad of structural problems facing the South African economy.
Pravin Gordhan is considered an independent mind. His return as South Africa’s finance minister will boost investor confidence.
South Africa has had three finance ministers in four days. President Jacob Zuma will live with the fall-out for the rest of his term. Markets have a long-term memory and won't easily forget.
The South African currency, the rand, fell to its lowest level in four years after President Jacob Zuma removed the country’s finance minister.
The removal of Minister Nene is a significant act. The fact that he has been replaced by someone who is unknown and untested simply compounds it.