Gigaba: Rand volatility not due to Zuma's reshuffle

Share your Subscriber Article
You have 5 articles to share every month. Send this story to a friend!
Finance Minister Malusi Gigaba at the World Economic Forum on Africa in Durban. (AFP)
Finance Minister Malusi Gigaba at the World Economic Forum on Africa in Durban. (AFP)

Durban – Finance Minister Malusi Gigaba on Thursday said the rand has always been volatile and this cannot be attributed to President Jacob Zuma’s Cabinet reshuffle at the end of March.
 
Gigaba was one of the panellists at a discussion on the growth outlook for Africa on the second day of the World Economic Forum (WEF) on Africa that is taking place in Durban. The session was facilitated by Bronwyn Nielsen, editor-in chief of CNBC Africa.
 
During the discussion Frederic Lemoine, chair of the executive board of French company Wendel, was critical of African governments which are unpredictable regarding policy direction.

He cited currency volatility and “unexpected reshuffling of government” as reasons for concern that would cause his company to withdraw its investment.
 
“We’d then be reluctant to trust a particular government,” said Lemoine.
 
Nielsen asked Gigaba to respond to Lemoine’s utterances, particularly with regard to the rand’s rapid movements lately.

“The exchange rate is okay,” Gigaba said. “We’ve seen it appreciating and stabilising.”
 
Nielsen, however, interjected pointing out that the rand has been in fact very volatile - “especially when there’s a quick succession of finance ministers.”
 
“Oh that,” Gigaba responded. He maintained, however, that the rand has been volatile for a “long time”. “It has nothing to do with Cabinet reshuffles, because they don’t happen very often.”

There’s more to this story
Subscribe to News24 and get access to our exclusive journalism and features today.
Subscribe
Already a subscriber? Sign in
Rand - Dollar
14.15
-0.2%
Rand - Pound
19.96
-0.2%
Rand - Euro
17.19
-0.1%
Rand - Aus dollar
11.00
-0.1%
Rand - Yen
0.13
-0.0%
Gold
1,843.76
0.0%
Silver
27.42
0.0%
Palladium
2,894.50
0.0%
Platinum
1,229.50
0.0%
Brent Crude
68.71
+2.5%
Top 40
60,573
+0.6%
All Share
66,598
+0.7%
Resource 10
69,386
-0.1%
Industrial 25
83,277
+0.9%
Financial 15
12,685
+1.5%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Voting Booth
Please select an option Oops! Something went wrong, please try again later.
Results
Yes, and I've gotten it.
21% - 1456 votes
No, I did not.
52% - 3629 votes
My landlord refused
27% - 1927 votes
Vote