ZAR stays under pressure on political jitters – Danske Bank

Jakob Christensen, Chief Analyst at Danske Bank, assessed the recent developments in South Africa and the implications on the Rand.

Key Quotes

“In South Africa, the rand strengthened against the USD yesterday after the high court found that any no-confidence vote in parliament could be decided by a secret ballot, but only if parliament demands the ballot to be secret”.

“The decision is seen as increasing the chance of ANC members voting against the Jacob Zuma and hence ousting him. We expect political uncertainty to remain high over the next six months which will weigh on the rand”.