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.
EPA/Dai Kurokawa
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.
Reuters/Siphiwe Sibeko