Rand slumps as Manuel quits
2008-09-23 13:32
Johannesburg - The rand and bonds weakened sharply on Tuesday after news that 14 members of cabinet had resigned - including the Minister of Finance Trevor Manuel.
"The news has come as quite a shock to the market. The news has had a very negative impact on the rand," a local currency trader said.
By 13:06 the rand was bid at R8.1690 to the dollar from a previous close of R7.9716. It was bid at R12.0975 to the euro from a previous R11.8263 and at R15.2185 against sterling from R14.8333 before.
The euro was bid at $1.4786 from $1.4794 overnight, while gold was quoted at $894.35 a troy ounce from $899.30/oz overnight.
An official statement from the presidency said the following ministers had resigned: the Deputy President, Minister of Defence, Minister of Finance, Minister in the Presidency, Dr. Essop Pahad, Minister of Intelligence, Minister of Correctional Services, Minister of Public
Enterprises, Minister of Science and Technology, Minister of Public Works, Minister of Provincial and Local Government and the Minister of Public Service and Administration.
Three deputies also resigned, namely the Deputy Minister of Foreign Affairs, Aziz Pahad, the Deputy Minister of Finance and the Deputy Minister of Correctional Services.
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