But, the ANC’s National Executive Committee met for the first time Wednesday since the party’s leadership election, at which it emerged that Zuma’s position was not discussed. Contrary to mounting speculation, “the matter was not for any discussion or debate,” ANC Secretary-General Ace Magashule told reporters, according to Reuters.
Reflective of the rand’s political sensitivity, the currency rallied one percent Tuesday following unconfirmed reports that Zuma had been ousted.
Piotr Matys, emerging market strategist at Rabobank, warned that ousting Zuma could also cause trouble for the South African currency, saying that: “The governing ANC could be engulfed in political bickering between Zuma’s camp and members of the party who voted for Ramaphosa.”
“If such negative scenario unfolds, optimism among investors may fade leaving the rand vulnerable to a round of profit taking,” he told Giftofaservant via e-mail Friday.