South Africa Rand surges as President Zuma fights for his political life

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Cape Town, South Africa, January 7 (Infosplusgabon) - South Africa's Rand has surged to its highest levels since mid-2015 amid speculation that President Jacob Zuma could be sidelined as early as next week.

 

The highly volatile currency, which is popular with speculators, traded at R12.20 to the US dollar on Friday following reports that leaders in the ruling African National Congress (ANC) have given Zuma until Tuesday to step down as President.

 

He was forced to stand down as President of the ANC at its December elective conference after serving two terms and, as a result, he has lost a great deal of his political muscle.

 

Several ANC national executive committee members said Zuma would face another motion of no confidence within his own party if he failed to step down.

 

The rand has strengthened considerably since the ANC conference during which Cyril Ramaphosa was elected head of the party. The former trade union leader and wealthy businessman is viewed as a capitalist friendly politician.

 

Meanwhile, the Institute for Security Studies (ISS) has warned that South Africa faces further credit downgrades if Zuma fails to vacate his position.

 

ISS official Jakkie Cilliers said that if South Africa's sovereign credit rating is downgraded again, the country would likely be locked into a period of constrained growth.

 

FIN/INFOSPLUSGABON/PLK/GABON 2018

 

 

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