The rand remained stable on Sunday night after President Cyril Ramaphosa announced a new Cabinet for the 7th administration. The new Cabinet included ministers and deputy ministers from the ANC, DA, IFP, PA, Good, UDM and FF Plus.
The rand was trading around R18.03 against the dollar at 10:20pm on Saturday.
Earlier in the day, the ZAR was trading at around R18.19 to the dollar at 4:30pm when the Presidency announced that Ramaphosa would address the nation.
In comparison to global currencies, the rand remained steady and was trading at around R19.36 to the euro and R22.82 to the pound.
Enoch Godongwana keeps his job
Ramaphosa said on Sunday that Enoch Godongwana would remain as finance minister in this new administration.
The Deputy Ministers of Finance will be David Masondo and Ashor Sarupen from the DA, Ramaphosa added.
Masondo like Godongwana has been able to retain his position in this new Government of National Unity (GNU).
Sarupen is a new figure and is a Member of Parliament for the Democratic Alliance (DA).
Politics and the rand
Ramaphosa’s decision to keep Godongwana and Masondo will no doubt appease the markets and as political appointments, especially the finance minister role has impacted the rand.
Casey Sprake, investment analyst at Anchor Capital told IOL Business that last weeks volatility in the rand reflects the resurgence of domestic political risks, highlighted by negotiation strife between the ANC and the DA.
“On a month-to-date basis, the rand has lost 1.88% against the dollar, driven by ongoing concerns around the formation of the new presidential cabinet”.
She concluded that this places the rand marginally ahead of Brazil and Mexico who are currently holding the bottom spots on the Emerging Market ladder.
IOL BUSINESS