The rand traded at 18.48 against the dollar at 3:27 GMT, 1.7% weaker than its previous close. Media reports of a major disagreement between the pro-business DA and President Cyril Ramaphosa over cabinet posts surfaced after the DA agreed to join the president’s government of national unity.
The discord between the African National Congress and the Democratic Alliance on the assignment of cabinet posts reportedly caused a sharp drop in the South African rand’s value on Thursday.Media reports of a major disagreement between the pro-business DA and President Cyril Ramaphosa over cabinet posts surfaced after the DA agreed to join the president’s government of national unity.
Instead, Ramaphosa offered the DA ministries such as public works, agriculture and transport, among others. According to the DA, the party had to ‘swallow a number of concessions in the past weeks including taking a back seat on the speaker of the national assembly’., financial markets are on edge as the cabinet’s makeup will reveal if the ANC plans to meaningfully share power with other parties such as the DA.
‘Further delays to the cabinet announcement will only cause jitters to multiply and feed the impression that the GNU is stumbling at the first hurdle,’ Louw Nel, senior political analyst at Oxford Economics, said. On Thursday, the Johannesburg Stock Exchange’s Top-40 index closed on 0.4%. The benchmark 2030 government bond experienced a decline as the yield increased by 30 basis points to 10.125%.
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