Rand reacts positively to secret ballot announcement

This is in stark contrast to the index plunging after finance minister Nhlanhla Nene was sacked and then later on when Pravin Gordhan was told to go.

Picture: Eyewitness News

JOHANNESBURG - In reaction to the announcement that Tuesday’s motion of no confidence will be done in secret, economists say the banking index and rand have improved significantly.

The rand is now 13.25 to the dollar, 17.26 to the pound and 15.63 to the euro.

Economists say the banking index rose by 1.76% after the announcement.

This is in stark contrast to the index plunging after finance minister Nhlanhla Nene was sacked and then later on when Pravin Gordhan was told to go.

The rand also improved somewhat following the announcement gaining major ground against the dollar and the pound.

Ratings agencies have warned that the country faces more downgrades if political uncertainty continues.

Agencies will have their attention fixed on Parliament on Tuesday when Members of Parliament decide on the fate of the President.

(Edited by Zinhle Nkosi)