South African President Jacob Zuma spooked local currency and commodity markets on Friday after he replaced a well regarded finance minister with a virtual unknown, DW reported. The rand and commodities plunged on the news. South Africa’s rand slumped to a record low on Friday as the country’s economic prospects darkened over Zuma’s unexplained firing of the respected finance minister. The rand breached 16 to the US dollar for the first time, government bond yields rose and bank stocks dived further in reaction to Nhlanhla Nene being dismissed late Wednesday.
Nene was replaced by David van Rooyen, a little-known figure from the ruling African National Congress party, in a move greeted with dismay by many investors and financial analysts.
