Rand strengthens as Zuma reinstates Gordhan
Pravin Gordhan is expected to hold a press conference later toady after being sworn as the second new finance minister in a week
PRESIDENT Jacob Zuma has made yet another overnight cabinet shuffle after his sudden announcement to fire finance minister, Nhlanhla Nene, and replace him with MP David van Rooyen last week.
The shock announcement played havoc with markets and dropped exchange rates to an all-time low.
In a bid to stop the economy’s freefall, Zuma announced late last night that Van Rooyen was to be removed from his newly appointed position and replaced with Pravin Gordhan.
Gordhan, who was finance minister during Zuma’s first term as president, will come back to the position he had previously held for five years.
"The minister [#PravinGordhan] was not aware of his new appointment until he was called by a journalist. https://t.co/sscSPzwViv
— SITHOLEEXPRESS (@SthembisoMedia) December 14, 2015
Van Rooyen will now fill Gordhan’s Co-operative Governance and Traditional Affairs post.
Gordhan is generally respected by investors as someone who holds a prudent fiscal line and despite having previously been under scrutiny over allegations that a ‘rogue’ intelligence unit was allowed to operate under his watch at the SA Revenue Service, the rand began strengthening immediately after news of his appointment, recovering to R 15.09 to the dollar from R 15.88 in a few short hours.
Having previously given no conclusive explanation for Nene’s sudden axing, Zuma said in a statement he had received ‘many representations to reconsider my decision’ and after ‘serious consideration and reflection’, decided to reinstate Gordhan.
He said Gordhan would ensure ‘an even stronger alignment between the budget and the medium-term strategic framework, in the interest of stimulating more inclusive growth and accelerated job creation while continuing the work of ensuring that our debt is stabilised over the medium term’.
Twitter reacted as expected, and we have chosen a few for you here:
https://twitter.com/helenblaine/status/676300020866486272
#PravinGordhan lo otypa lama meme's deserves a bells pic.twitter.com/svgWVbfbaM
— Nontobeko Yamantungwa Sibisi (@Nontobek0Sibisi) December 14, 2015
After these #Nene #VanRooyen & #PravinGordhan thing, this is what will happen….. pic.twitter.com/Cq9Dx7jgGu
— Masesebe Wa Ramahuma. 🇿🇦🇧🇼🇰🇪🇿🇼🇬🇭 (@masesebe) December 14, 2015
Source: IOL
