SA will not change fiscal policy - Reserve Bank
Governor Lesetja Kganyago says the JSE absorbed the shock from Nhlanhla Nene’s firing due to its liquidity.
JOHANNESBURG - South African Reserve Bank Governor Lesetja Kganyago has called for caution when analysing the turbulence on South African markets over the past week, saying while many traders have gone on holiday, the JSE managed to absorb the shock from Finance Minister Nhlanhla Nene's firing due to its liquidity.
Kganyago yesterday joined Pravin Gordhan for a briefing in Pretoria, where investors locally and abroad were reassured that the country will not change its fiscal policy.
Gordhan was reappointed as Finance Minister on Sunday after a four-day stint by former Member of Parliament David van Rooyen, who now serves as minister of the Cooperative Governance and Traditional Affairs Department.
Kganyago also denied he planned to convene an emergency monetary policy committee meeting due to the rand falling to record lows of R16 to the dollar.
He says while R169 billion in market capitalisation was lost, there has since been a recovery.
"The market continued to trade, which is testimony to our deep and liquidated financial markets - that they could withstand a shock."
WATCH: _Markets react to musical chairs at Finance Department _
Meanwhile, the rand has made further gains this morning.
At one stage this morning it dipped to just below 15 to the US dollar.
This after plummeting to record lows in the wake of the recent Cabinet reshuffle.