According to Analyst Daniel Silke who spoke to Fin24 said that the Rands Value to Dollars would change in a noticeable way in the event that the ANC Finally make President Zuma to resign.
“This could mean the currency moving to R13.50 or stronger to the dollar, but any further strength would be unlikely as the fair value of the currency is anywhere between that level and R14/$.
“The rand is still a function of global market trading,” he said. “The effects of a stronger dollar and the possible US interest rate increase put pressure on our currency.
“The rand is also yet to feel the more protectionist trade policies of a new Trump administration, which could also keep the pressure on.
“Ultimately, the recall of Zuma would be seen by markets as initially positive, which would lead to volatility on the stronger side, but greater political and policy certainty beyond the reign of President Zuma would be needed before any meaningful and more long-term strength is felt.
“As an emerging market currency in a country with so much dependent on global conditions such as resources and trade, it’s not just about domestic politics.
“However, should a broad turnaround in investor sentiment be forthcoming following a dramatic change of the president, the rand would be a chief beneficiary.”
Another analyst with Umkhulu Consulting, Adam Phillips said that if this should happen , that it would be a game changer.
“The rand has done quite well this year to recover from levels above R16/$, so any real strength would only come through once economic data shows we are on the correct path,” he told Fin24.
“Even if he was to go, how do investors know there are going to be changes for the better? That is why the ANC cannot wait until this time next year, as I presume the majority of party members know that a new leader is needed to help their popularity.
“If this was to happen soon, one also needs to look at the global scenario with Brexit, Trump taking over and various European countries holding elections and referendums,” he said. “There are too many loose variables and that’s why volatility and low volumes will be evident for the test of this year.”