South African rand weakens, focus on cabinet announcement

South African rand weakens, focus on cabinet announcement

At 0556 GMT, the rand traded at 18.0075 against the dollar, about 0.22% weaker than its previous close.

Nine parties have joined the ANC in a government of national unity (GNU), including the pro-business Democratic Alliance, and all eyes will be on Ramaphosa’s cabinet announcement expected this week.

Ramaphosa said in his weekly newsletter to the nation on Monday that South Africans wanted the elected representatives “to put aside narrow interests and work together to build the country”.

“The GNU cannot be preoccupied with jockeying for positions, tussles over appointments or squabbles within and between parties.”

The cabinet announcement could provide direction for the country’s financial markets.

© Reuters. South African Rand coins are seen in this illustration picture taken October 30, 2020.  REUTERS/Mike Hutchings/Illustration

Ramaphosa added that the government’s the top priority was economic growth to create jobs.

South Africa’s benchmark 2030 government bond was weaker in early deals, with the yield up 4 basis points to 9.725%.

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