Rand will bounce back - Gordhan
Finance Minister Pravin Gordhan believes the rand will bounce back from the three-and-a-half year low.
JOHANNESBURG - Finance Minister Pravin Gordhan on Wednesday said he believes the rand will bounce back, despite widespread labour strikes in the mining sector.
Illegal strikes spread across the country in recent weeks, following the unrest at Lonmin's Marikana Mine in the North West.
Over the past week, three mining companies have sacked thousands of workers responsible for halting production at gold and platinum mines.
The rand then fell against the US dollar, hitting a three-and-a-half year low earlier this week.
Economist Iraj Abedian said the rand will only improve if the situation on the ground stabilises.
"The rand in this case will come back if the situation stabilises very quickly. If businesses support the sector, then the rand will go back to its pre-crisis trend."
On Tuesday, Atlatsa Resources Corporation fired more than 2,000 workers at its Bokoni Platinum Mine in Limpopo.
Gold One sacked 1,438 employees at its Ezulwini Mine on Gauteng's West Rand yesterday, while Amplats fired 12,000 striking workers at its Rustenburg operation last week.