Bleak 2016 for markets in wake of Nene’s removal
11 December 2015
President Zuma surprised markets on Wednesday evening by recalling South Africa’s well-respected Finance Minister, Nhlanhla Nene, and appointing David van Rooyen, an ANC veteran, as the head of National Treasury. The Rand responded to this announcement by plunging from R14.60/US$ before the announcement to an all-time low of R15.38/US$ before settling around R15.00/US$ on international markets on Thursday. The Rand’s reaction is essentially a proxy for the response of analysts and investors, and captures the extent to which Zuma’s decision shocked – or, at the very least, surprised – and disappointed market participants.