The sudden upsurge of the South African rand is quite inspiring, encouraging and an absolute source of relief to the entire people of South Africa.
The rand raced to R13.02/$ on Tuesday as traders reacted on a Bloomberg report that the top leadership of the ruling African National Congress will discuss the option of removing President Jacob Zuma from his post at a May 26-28 meeting.
The news agency quoted two senior party officials who will be in attendance, but asked not to be identified because they aren’t authorised to speak publicly on the matter.
By 15:54 the local unit was trading at R13.09 to the greenback as the suspected terrorist attack in Manchester still weighed on risky emerging market assets. The rand traded as high as R13.31 to the US dollar on reports that 22 people were killed on Monday night in a suicide bomb attack after an Ariana Grande concert in Manchester.
According to Bloomberg, the ANC’s national executive committee is due to discuss a motion of no confidence in Zuma that has been filed by opposition parties in Parliament. Some members of the panel will also raise the possibility of the ANC taking the matter into its own hands, according to the party officials, who sit on the decision-making panel.
The rand gained as much as 1.5% against the dollar on the news.
ANC spokesperson Zizi Kodwa said that while the agenda will only be set at the meeting, the committee wouldn’t discuss Zuma’s removal.