Rand hit hard after Pravin Gordhan sacked

Rand hit hard after Pravin Gordhan sacked

The rand has taken a dive following the news that Finance Minister Pravin Gordhan has been removed in last night's cabinet reshuffle.

File photo

The currency, which traded at R12.41 against the US Dollar on Monday morning, has reacted negatively to speculation of the imminent reshuffle this week.

This morning it's trading at R13.47 to the US Dollar.

Chief Economist at Efficient Group, Dawie Roodt, however, says the rand is not in a freefall.

"I don't think the rand is going to go much weaker than where it is at the moment. Of course, it depends on what's going to happen on the political front, because I don't think we have seen the end of political development. A lot can still happen today," says Roodt.

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Roodt says we can expect a downgrade.

"We had a chance, they gave us an opportunity. Even if President Zuma is replaced, I don't think we can avert a downgrade," says Roodt.

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